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BASF and SK E&S sign power purchase agreement term sheet for renewable energy
- From 2025, renewable energy will be supplied to BASF sites in Korea from SK E&S, over the next 20 years
- Replacing 16% of its energy needs with renewable electricity by 2025, BASF in Korea expects to cut carbon emissions by 900,000 tons until 2045
May 2, 2023, Seoul – BASF has partnered with SK E&S, an eco-friendly energy subsidiary of SK in Korea, in its journey towards achieving climate neutrality.
BASF and SK E&S signed a power purchase agreement (PPA1) term sheet on April 18, in Seoul, Korea. This landmark agreement enables BASF in Korea to meet 16% of its energy needs with renewables by 2025 and reduce greenhouse gas emissions by 900,000 tons until 2045. The new partnership is part of BASF's ongoing drive to achieve net-zero emissions by 2050, by replacing fossil fuels with solar, wind, and other renewable energy sources.
The signing ceremony was attended by BASF Company Ltd. Managing Director Dr. Dschun Song, SK E&S General Director Si-Jong Lim, along with other key officials.
“The PPA with SK E&S will increase the adoption of renewable energy at BASF sites in Korea. In line with our global commitment of achieving climate neutrality by 2050, BASF in Korea aims to operate all its sites in climate-friendly and low carbon footprint basis. We will leverage renewable energy and advanced technologies to transform existing production processes and work towards achieving our climate neutrality goal.” said Dr. Dschun Song, Managing Director of BASF Company Ltd.
“Through close cooperation between the two companies, we have achieved the signing of a renewable energy PPA with BASF in Korea. In line with the global trend towards renewables, we will continue to expand partnerships with domestic and foreign companies in Korea under the global initiative RE100,” added Si-Jong Lim, General Director of SK E&S.
As one of the leading global chemical companies with the corporate purpose of ‘We create chemistry for a sustainable future,’ BASF has always given top priority to environmental protection and corporate social responsibility, since it established presence in Korea in 1954. BASF has large-scale production facilities in operation in eight locations across Korea, including Yeosu, Ulsan, Gunsan, Ansan, Yesan, Onsan, and Gimcheon, in addition to its Seoul office.
As the largest private renewable energy company in Korea, SK E&S has a 3GW portfolio of renewable energy projects already up and running or in the pipeline. The company is on track to ramp it up to 7GW by 2025.
PPA1 (Power Purchase Agreement): Agreement between power producer and a customer company for supply of electricity
About BASF
At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. More than 111,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €87.3 billion in 2022. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.
About SK E&S
SK E&S, which started as a holding company for the city gas business in 1999, is the only Korean company capable of creating an organic synergy between hydrogen, renewable energy, energy solutions, and LNG businesses.
SK E&S’ natural gas power plants are maintaining their position as among the most economically competitive plants in the market. Furthermore, eco-friendly and efficient integrated energy projects offered by SK E&S are contributing to a more stable electric power supply for all regions. Our seven subsidiaries, located throughout Korea supplies safe and clean city gas in eight regions and has the largest market share in the Korean.
To make its next leap forward to be a global major eco-friendly energy provider, SK E&S is expanding its presence in global hydrogen, renewable energy, energy solutions, and low-carbon LNG businesses.
More information is available at ‘SK E&S Media room (http://media.skens.com) and ‘SK E&S Youtube channel (https://www.youtube.com/SKENSTV), 'SK E&S official Instagram (https://www.instagram.com/skens_official/).
