Nexen Tire Signs PPA with SK Innovation E&S, Accelerates Transition to Renewable Energy
On August 24, Nexen Tire announced that it will strengthen its commitment to sustainable management by increasing the proportion of renewable energy used, including by introducing a direct power purchase agreement (PPA) for renewable energy at its Yangsan plant and expanding self-generation of solar power at its Changnyeong and Yangsan plants.
Nexen Tire has signed a PPA with SK Innovation E&S and, starting in November, will receive approximately 4MW of combined onshore wind and solar power. This system allows electricity consumers to contract directly with renewable energy suppliers and receive power from them.
The annual amount of electricity generated is expected to be about 6 GWh, which is enough to power approximately 1,600 households of three people for a year. Through this initiative, Nexen Tire expects to reduce greenhouse gas emissions by approximately 2,700 metric tons of CO₂ annually.
The company will also expand its own solar power generation facilities. At the Changnyeong plant, solar facilities previously operated under a roof rental model will be sequentially converted to self-generation as contracts expire, and by 2028, the plant will have solar generation capacity of over 10MW. This will allow approximately 9% of the factory’s total electricity use to be supplied by renewable energy. Nexen Tire is also considering the installation and operation of solar self-generation facilities at the Yangsan plant.
Within the automotive parts industry, as finished car manufacturers increasingly call for greenhouse gas reduction, the shift to renewable energy has become linked to market competitiveness. Nexen Tire previously disclosed and obtained approval for its goal to reduce greenhouse gas emissions (Scope 1 and 2) by 58.8% by 2034 compared to 2023, in accordance with Science Based Targets initiative (SBTi) guidelines.
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A Nexen Tire official stated, “This is a strategic investment aimed at securing sustainable competitiveness in the global market, going beyond merely responding to regulations,” adding, “We will gradually expand the introduction of renewable energy to all domestic and overseas production bases.”
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