KT will pursue a direct renewable energy power purchase agreement (PPA) with Tokyo Electron Korea to achieve carbon neutrality.

On May 11, the two companies held a signing ceremony attended by key officials. Based on the agreement, KT will supply renewable energy to Tokyo Electron Korea’s major business sites. The direct PPA cooperation between KT and Tokyo Electron Korea is a power trading method in which an energy supplier such as KT supplies electricity produced by renewable power generators directly to companies and others.

In September 2024, KT received approval from the Ministry of Trade, Industry and Energy for its status as a renewable electricity supply business operator under the Electric Utility Act, allowing it to participate in the direct PPA market.

Tokyo Electron has major business sites and research and development (R&D) centres in South Korea, including in Hwaseong, Yongin and Seongnam. Starting in September, KT will supply renewable energy to key sites including Tokyo Electron Korea’s Hwaseong office and its semiconductor manufacturing process R&D centre.

At the initial stage, it plans to provide 15 megawatts (MW) of renewable power, and then expand the transaction to supply 50 MW. The 50 MW is a large-scale capacity that can cover the sites’ overall annual power demand.

KT said it has built an intelligent renewable power supply chain based on its capabilities in its carbon neutrality platform, KT-Net Zero, which calculates and monitors greenhouse gas emissions. KT plans to expand the private direct PPA market starting with this project with Tokyo Electron Korea.

Kim Yong-nam (김용남), head of corporate business at KT’s enterprise division, said the large-scale direct PPA agreement between KT and Tokyo Electron Korea is a new milestone in manufacturers’ transition to renewable energy. He said KT will become a leading carbon neutrality platform company that contributes to domestic companies’ use of renewable energy and the achievement of RE100.