Sebang Global Battery Signs Long-Term Solar Power Purchase Agreement with Hanwha Solutions; Supply to Changwon Plant to Begin in 2027

Securing 10.3 MW of solar power for 20 years
To cover about 11% of the Changwon plant's annual electricity use; expected to reduce greenhouse gas emissions

Officials from Sebang Battery and Hanwha Qcells pose for a commemorative photo at the direct PPA signing ceremony held at Hanwha Solutions' headquarters. (From left) Lee Wonseok, head of the Management Administration Division, and Yoo Jaeyeol, head of the Korea Business Division. Provided by Sebang Battery.

Sebang Global Battery (CEO Park Jeonghui) said on November 11 that it had signed a solar power purchase agreement (PPA) with Hanwha Solutions' Qcells division (Hanwha Qcells) and would expand its use of renewable energy at its Changwon plant in Gyeongsangnam-do.

The signing ceremony was held at Hanwha Solutions' headquarters. Attendees included Lee Wonseok, head of Sebang Global Battery's Management Administration Division, and Yoo Jaeyeol, head of Hanwha Qcells' Korea Business Division, along with other officials from both companies.

Under the agreement, Sebang Global Battery is scheduled to receive solar-generated electricity for 20 years, starting in the first quarter of 2027. The generation facilities covered by the agreement have a capacity of 10.3 MW, and the electricity supplied will account for about 11% of the Changwon plant's annual power consumption.

A direct PPA is an arrangement in which a company signs a contract with a renewable energy producer to purchase the electricity generated directly. Companies can set the contract period and purchase terms in advance, enabling them to use this arrangement to develop medium- to long-term plans for securing renewable energy.

Sebang Global Battery plans to increase the share of renewable energy used at its Changwon plant through this agreement. The company expects this to reduce greenhouse gas emissions by about 5,000 tons annually. It said long-term power purchase agreements can link renewable energy usage targets with actual procurement plans, making them a medium- to long-term energy management tool for manufacturers.

The PPA also reflects market conditions in which global customers are tightening their supply chain carbon management standards. More overseas customers are assessing their suppliers' greenhouse gas emissions and renewable energy usage, and some are beginning to use related performance records as a requirement for bidding.

Sebang Global Battery plans to establish a basis for procuring renewable energy under terms agreed in advance for an extended period and to respond to customers' carbon reduction requirements. The company expects this power procurement system to also help strengthen its competitiveness in securing orders in the future.

Amid growing volatility in global energy prices, the agreement is expected to help defend cost competitiveness by securing renewable energy at stable rates while meeting major customers' standards for environmentally friendly supply chains.

A Sebang Global Battery official said, "This PPA marks the first step toward shifting the power supply structure at our production site to center on renewable energy. We will continue to expand renewable energy use and improve energy efficiency to establish ourselves as a sustainable partner trusted by global customers."

This content was produced with the assistance of AI translation services.