SeAH Blog

On July 16, SeAH Besteel Holdings (CEO Seo, Hanseog) announced that it has signed a 20-year renewable energy Power Purchase Agreement (PPA) with Hanwha Qcells, a leading provider of solar energy solutions.

Starting in the second half of this year, SeAH Besteel will begin receiving solar-generated renewable electricity.

A PPA is a direct energy transaction between a renewable energy producer and an electricity consumer, bypassing the traditional wholesale power market. This model has gained attention as a key method for securing renewable energy in pursuit of RE100 goals and carbon neutrality.

As of 2024, SeAH Besteel has secured 26,967 MWh of renewable energy annually. Through this new agreement, the company will acquire an additional 16,425 MWh per year—raising its total annual renewable energy consumption to 43,392 MWh. This amount is equivalent to the yearly energy usage of roughly 12,000 households (based on 3,684 kWh per household) and is expected to reduce carbon emissions by approximately 19,800 tons each year.

SeAH Besteel operates electric arc furnaces utilizing steel scraps, a method that results in significantly lower carbon intensity compared to the traditional blast furnaces using iron ore. With growing emphasis on carbon neutrality and increased demand for low-carbon and eco-friendly steel products, the company intends to proactively expand its use of green energy and strengthen its ESG practices.

Hanwha Qcells, a prominent leader in Korea's renewable energy industry, is actively advancing the domestic market by offering various green energy supply models, including PPAs. This 20-year agreement marks the beginning of a strategic long-term partnership between SeAH Besteel and Hanwha Qcells in the pursuit of RE100.

Speaking at the signing ceremony, Hong Sangbum, Executive Vice President of SeAH Besteel, noted, “Amid tightening global environmental regulations, expanding the use of renewable energy through PPAs will enhance corporate value and open doors to new business opportunities. We will continue to strengthen our ESG initiatives through a range of green strategies.”

Yoo Jaeyeol, Head of Korea Business at Hanwha Qcells, added, “This agreement empowers us to actively support Korean companies in their RE100 and carbon neutrality efforts. We will keep working with industrial partners to expand zero-carbon energy and drive the national energy transition forward.”