Korea Zinc (010130) will source renewable energy from domestic solar power plants for 20 years to cut carbon emissions and electricity costs.
The company said on the 29th that it signed a contract with Hanwha Shinhan Terawatt Hour to receive renewable energy generated at solar plants in Gangwon State, Gyeonggi Province and North Gyeongsang Province.
The supply amounts to 11 gigawatt-hours a year and runs for 20 years starting in December. The price stays the same throughout the contract period. Korea Zinc said it expects meaningful cost savings over the medium to long term, given the outlook for industrial electricity rates.
Korea Zinc formed a strategic partnership with Hanwha Shinhan Terawatt Hour last year to expand its renewable energy business, acquiring a 33.3% stake.
The company already runs renewable generation projects in Australia. It completed a 124-megawatt solar plant there in 2018 that supplies electricity to its Sun Metals refinery. The plant generates about 261 GWh, or 25% of the refinery's total power use. Additional power purchase agreements have since raised the share of renewable energy to 50% of total consumption.
Korea Zinc also invested in MacIntyre, a large wind farm in Australia, in 2024, taking a 30% stake. Once the wind farm moves into full commercial operation, the share of renewable energy used at the Sun Metals refinery is expected to rise further.
The company plans to begin operating SunHQ, a green hydrogen production and refueling facility in Australia, this year. Green hydrogen produced there using renewable energy will be used for hydrogen mobility. At Korea Zinc's Onsan refinery, hydrogen-powered forklifts have been introduced for the first time at a national industrial complex to reduce carbon emissions.
The company said it will speed up the shift to renewable energy at the Onsan refinery, including efforts to convert green hydrogen into green ammonia and bring it into South Korea.
"This contract allows us to secure renewable energy stably over the long term not only in Australia but also at home," a Korea Zinc official said. "We plan to accelerate carbon reduction by building a diverse energy portfolio spanning solar, wind and green hydrogen, in addition to purchasing renewable power."
