Pioneering Pact Propels Photovoltaic Progress & Purpose

SeAH Steel, a prominent South Korean steelmaker, has announced a landmark 20-year Power Purchase Agreement with Hanwha Qcells, a global renewable energy solutions provider. This agreement will begin supplying SeAH Steel with solar-generated electricity in the second half of this year. The partnership reflects SeAH Steel’s resolve to advance its carbon neutrality goals and fulfill RE100, the global initiative encouraging companies to transition to 100% renewable energy usage.

Strategic Solar Sourcing Strengthens Sustainability Standards

The Power Purchase Agreement enables SeAH Steel to bypass traditional power markets, directly buying electricity from renewable producers like Hanwha Qcells. Through this arrangement, SeAH Steel will receive an additional 16,425 megawatt hours of renewable energy every year. This will increase its total renewable energy usage to 43,392 megawatt hours annually. Previously, SeAH Steel secured 26,967 megawatt hours through an agreement with SK Innovation E&S. The new contract shows SeAH Steel’s commitment to diversifying its renewable energy partnerships and scaling up its green energy transition.

Resilient Renewable Roadmap Reinforces Responsible Reputation

SeAH Steel operates using four electric furnaces fueled by scrap metal, avoiding the environmental impact of traditional blast furnaces. This process aligns naturally with renewable energy adoption. However, the company has previously acknowledged challenges from rising electricity costs, noting in its business report that such costs could affect business targets. The long-term PPA with Hanwha Qcells addresses this concern by providing a stable and predictable source of clean energy, helping mitigate the impact of fluctuating industrial electricity prices.

Collaborative Commitment Captured in Ceremonial Contract Celebration

The signing ceremony captured this shared vision for sustainability. Pictured were Hong Sang-beom, the head of management at SeAH BeSteel, and Yoo Jae-yeol, head of the Korean division at Qcells, shaking hands over the signed contract. Their smiles reflected optimism about the collaboration. SeAH Holdings shared the photograph, symbolising how industrial partnerships and renewable energy providers can join forces to achieve mutual goals of environmental stewardship and economic competitiveness.

Solar Strategy Sparks Significant Sustainability Shift

By adopting this long-term solar power agreement, SeAH Steel is not only reducing its carbon footprint but also setting an example in the Korean steel industry. Using scrap-based electric furnaces already lowers emissions compared to traditional steelmaking. The addition of clean solar power further reduces indirect emissions from electricity use, positioning SeAH Steel as a leader among Korean manufacturers pursuing carbon neutrality.

Photovoltaic Partnership Powers Progressive Public Perception

This collaboration is also expected to improve SeAH Steel’s image among global partners, investors, and customers increasingly focused on sustainability. Meeting RE100 targets demonstrates alignment with global corporate responsibility standards and shows the company’s seriousness in reducing climate impact. This could strengthen SeAH Steel’s market position and appeal, especially in sectors and regions where low-carbon products are becoming more valuable.

Synergistic Solar Supply Supports Steadfast Strategic Stability

Ultimately, the agreement shows how industrial consumers and renewable producers can forge long-term partnerships that benefit both sides. For SeAH Steel, the 20-year contract ensures energy security and cost predictability. For Hanwha Qcells, it guarantees a steady demand for solar-generated power, encouraging further investment in clean energy infrastructure. Together, the companies contribute to South Korea’s broader transition towards a sustainable energy future.

Key Takeaways:

• SeAH Steel signed a 20-year deal with Hanwha Qcells to source solar power directly.

• The contract adds 16,425 megawatt hours of renewable energy, bringing the total to over 43,000 megawatt hours.

• The agreement supports SeAH Steel’s RE100 commitment and helps address rising industrial electricity costs.