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South Korea’s LG Chem Ltd. has signed a third-party power purchase agreement (PPA) with Zhejiang Zheneng Electric Power for 50 GWh of renewable energy annually to power its two battery component plants in China with 100 percent renewable energy.
The deal will let LG's precursor plant is in Quzhou, Zhejiang Province eliminate 35,000 tons of carbon emissions, which is equivalent to those created by 14,000 internal combustion engine vehicles a year.
LG Chem earlier signed a deal with Jiangsu New Energy Development Co to procure 140 GWh a year of renewable energy for powering its anode material plant in Wuxi, Jiangsu Province.
Precursors and anodes are key rechargeable battery materials
With its latest PPA deal, LG Chem has achieved a RE100 status for its entire battery material value chain in China.
The RE100 or Renewable Energy 100 initiative prompts companies that use more than 100 GWh per year to transition to using 100 percent renewable energy by 2025.
In July this year, LG Chem became the first Korean chemical company to announce a carbon neutrality plan aimed at producing zero carbon by 2050.
LG Chem has procured a total of 337.2 GWh of renewable energy in Korea and abroad, equal to the amount of electricity used by about 80,000 four-person households a year.
Joining the RE100 initiative improves a company’s export competitiveness, amid tightening global eco-friendly regulations.
