Nexen Tire accelerates shift to renewable energy at Korean plants
Summary
Nexen Tire is increasing renewable energy use at its Korean factories as global automakers push suppliers to cut emissions. The company signed a direct power purchase agreement with SK Innovation E&S, and the Yangsan plant will start receiving about 4 megawatts of renewable power in November. Nexen Tire also plans to expand solar generation at its Changnyeong plant, with more than 10 megawatts of solar capacity expected by 2028. The company said the shift is a strategic investment to strengthen sustainable competitiveness in global markets.
Key Facts
- The Yangsan plant in South Gyeongsang Province is expected to receive about 4 megawatts of renewable power starting in November.
- The agreement is projected to generate about 6 gigawatt-hours of electricity a year and cut greenhouse gas emissions by about 2,700 metric tons of carbon dioxide annually.
- The Changnyeong plant is expected to have more than 10 megawatts of solar capacity by 2028, allowing renewable energy to account for about 9 percent of its total electricity consumption.
The Nexen UniverCity in the Magok Industrial Complex in Gangseo, Seoul. Courtesy of Nexen Tire
Nexen Tire is moving to increase renewable energy use at its Korean factories, signing a direct power purchase agreement and expanding solar generation as global automakers press suppliers to cut emissions.
The tire maker said Monday that it signed a renewable energy direct power purchase agreement with SK Innovation E&S, allowing it to buy electricity directly from a renewable energy supplier.
Beginning in November, the Yangsan plant in South Gyeongsang Province will receive about 4 megawatts of renewable power from a mix of onshore wind and solar energy.
The arrangement is expected to generate about 6 gigawatt-hours of electricity annually, enough to supply roughly 1,600 three-person households for a year, while cutting greenhouse gas emissions by about 2,700 metric tons of carbon dioxide annually.
Nexen Tire also plans to expand solar power generation at its Changnyeong plant in South Gyeongsang Province, gradually replacing rooftop facilities operated under leases with systems it owns and operates.
The Changnyeong plant is expected to have more than 10 megawatts of solar capacity by 2028, allowing renewable energy to account for about 9 percent of the factory’s total electricity consumption.
The company is also considering installing and operating its own solar generation facilities at the Yangsan plant.
Nexen Tire supplies original-equipment tires to European premium automakers including Mercedes-Benz, BMW, Audi and Porsche, making efforts to reduce emissions during production increasingly important to its business with automakers.
The company has also received approval under the Science Based Targets initiative for a goal of cutting its Scope 1 and 2 greenhouse gas emissions 58.8 percent by 2034 from 2023 levels.
A Nexen Tire official said the shift to renewable energy is a strategic investment aimed at strengthening sustainable competitiveness in global markets rather than simply responding to regulations.
This article was published with the assistance of generative AI and edited by The Korea Times.
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