Korea Zinc Signs 20-Year Supply Agreement for 'Renewable Energy' with Hanwha Affiliate

[Financial News] Korea Zinc will receive electricity generated at domestic solar power plants for 20 years. Through the agreement, it plans to reduce carbon emissions while cutting power costs over the medium to long term.
Korea Zinc announced on the 29th that it had signed an agreement to receive 11 gigawatt-hours (GWh) of renewable energy annually from solar power plants operating in Gangwon State, Gyeonggi Province and Gyeongsangbuk-do through Hanwha Shinhan Terawatt Hour. Korea Zinc has formed a strategic partnership with Hanwha Shinhan Terawatt Hour and holds a 33.3% stake in the company.
The power supply will begin in December and continue for 20 years, with the supply price remaining unchanged throughout the contract period. Korea Zinc expects to achieve medium- to long-term cost savings depending on trends in industrial electricity rates. The company estimates that annual carbon emissions will be reduced by approximately 4,200 tons, equivalent to the annual emissions of about 2,100 passenger vehicles.
A Korea Zinc official said, "Through this agreement, we can now secure renewable energy stably over the long term not only in Australia but also in Korea. By enhancing our capabilities in renewable energy procurement and operations and continuously expanding the share of renewable energy we use at home and abroad, we will lead the way in achieving carbon neutrality."
Korea Zinc has strengthened its efforts to achieve carbon neutrality by diversifying its renewable energy portfolio in Korea and abroad. In 2018, it completed a 124-megawatt (MW) solar power plant in Australia and began supplying electricity to the local Sun Metals Smelter. The plant generates approximately 261 GWh annually, equivalent to about 25% of the smelter’s total electricity consumption. After adding more power purchase agreements, the share of renewable energy in its power use has now risen to approximately 50%. In 2024, Korea Zinc secured a 30% stake in MacIntyre Wind Farm. The company expects the share of renewable energy used by the Sun Metals Smelter to increase further once the wind farm begins full commercial operations.
Korea Zinc is also pursuing a green hydrogen business. It plans to bring Australia’s green hydrogen production and refueling facility, SunHQ, into operation this year. At its Onsan Smelter in Korea, the company has installed a refueling station for hydrogen forklifts and introduced hydrogen forklifts.
A Korea Zinc official said, "We plan to accelerate carbon reductions by building a diverse energy portfolio that includes not only renewable energy power purchases but also solar power, wind power and green hydrogen. Over the medium to long term, we will continue promoting the renewable energy transition at the Onsan Smelter, including by considering the conversion of green hydrogen produced in Australia into green ammonia for introduction into Korea."
[email protected] Jeong Won-il Reporter