SK Group announced on Friday that nine of its affiliates have inked a historic 20-year agreement with SK E&S, a leading clean energy provider within the conglomerate, to procure an annual total of 537 gigawatt-hours of renewable energy. The deal, marked as the largest direct renewable energy purchase agreement (PPA) in Korea, is anticipated to yield a substantial reduction of 5 million metric tons of greenhouse gas emissions over the next two decades—equivalent to planting approximately 20 million pine trees nationwide.
While the financial details of the deal remain undisclosed, the nine affiliates strategically selected SK E&S after a thorough comparison of quotes from various suppliers. This strategic move is expected to provide the affiliates, including mobile carrier SK Telecom, semiconductor materials manufacturer SK Siltron, and semiconductor chemicals producer SK Materials, with electricity at competitive rates, thanks to the significant volume involved.
Commencing in 2026, SK E&S will annually supply 537 gigawatt-hours of solar energy, a volume equivalent to the energy needs of approximately 190,000 households each year. This renewable energy will power critical sites and data centers of the participating affiliates, contributing to their commitment to sustainable practices.
The PPA model, characterized by its ability to establish a stable and long-term financial structure for new clean energy projects, enables energy consumers to directly purchase electricity from the supplier under extended contracts. Notably, SK Materials, one of the participating affiliates, had previously entered a 65 gigawatt-hour deal last year and has now increased its purchase volume to an impressive 171 gigawatt-hours—the highest among the participating companies.
SK Group Chairman Chey Tae-won has been an advocate for accelerating the transition to net-zero carbon emissions across the conglomerate. Speaking at the group's executive seminar in 2021, Chey emphasized the importance of SK Group contributing to the global carbon reduction target by aiming to eliminate approximately 200 million tons of carbon emissions by 2030. The conglomerate's overarching goal is to lead the charge in eco-friendly business practices and achieve a net-zero carbon footprint by the year 2035.
