Hyundai Glovis signs renewable energy deal with Hyundai E&C

The Glovis Stella, a pure car and truck carrier operated by Hyundai Glovis / Courtesy of Hyundai Glovis

Hyundai Glovis, Korea’s leading logistics and shipping company, has partnered with Hyundai E&C to power its domestic and international operation bases with a substantial amount of renewable energy, aiming for emission-free operations.

According to the Hyundai Motor Group subsidiary Thursday, it has signed a long-term solar power supply agreement with the construction giant Hyundai E&C, covering a total volume of 127 gigawatt hours. This amount of energy is enough to power approximately 35,000 four-person households for an entire year.

The deal is a virtual power purchase agreement (VPPA), under which a company can indirectly invest in renewable energy-based power. Hyundai Glovis said VPPA is a common type of power supply deal among companies in the United States and Europe which have committed to RE100 — a global initiative bringing together the world's most influential businesses committed to using 100% renewable electricity in their operations.

Under the deal, Hyundai Glovis will place orders of renewable energy-based power generation with Hyundai E&C. The construction firm, in turn, coordinates with power suppliers to generate solar-powered electricity. The power suppliers then register Hyundai Glovis as the end-user of the generated electricity.

Hyundai Glovis said the deal will allow it to transition the electricity powering all its business operation bases to renewable energy. It added that the initiative will generate enough renewable energy to reduce annual greenhouse gas emissions by approximately 2,300 tons of carbon dioxide equivalent.

The measure is part of Hyundai Glovis’ carbon neutralization goal by 2045. In 2023, the company released a roadmap to the goal in its Net Zero Special Report. The report said the company will reduce emissions not just by using more renewable energy-based power but also by improving the energy efficiency of its more than 30 carriers and tankers, turning the vessels emission-free and introducing electric or hydrogen freight trucks.

The report also said by 2040, the company will use only renewable energy-based electricity to power its offices and facilities here and outside Korea.

“Our subsidiaries in North America and Asia will see their power shift to renewable energy-based by 2030 and those in Europe and our head office in Seoul by 2040,” a Hyundai Glovis official said.