(KT)
KT Corp. said Monday it will begin supplying renewable energy to Tokyo Electron Korea under a direct power purchase agreement, supporting the semiconductor equipment maker’s carbon-neutral transition in South Korea.
The two companies signed a memorandum of understanding for a direct renewable energy power purchase agreement, or PPA, under which an electricity supplier secures renewable power from generators and delivers it directly to corporate customers without going through the wholesale electricity market.
South Korea introduced the direct PPA system in 2022 to help companies participate in the RE100 global renewable energy initiative.
Beginning in September, KT will supply renewable electricity to major Tokyo Electron Korea sites, including its Hwaseong office and semiconductor process research and development centers. Initial supply capacity will total 15 megawatts, with the two companies planning to gradually expand the agreement to 50 megawatts.
A 50-megawatt supply would be enough to cover the facilities’ overall annual electricity demand.
Tokyo Electron Korea, the South Korean unit of Japanese semiconductor equipment manufacturer Tokyo Electron, operates major business sites and R&D centers in Hwaseong, Yongin and Seongnam. The company has recently expanded its South Korean operations to strengthen support for key customers such as Samsung Electronics and SK hynix.
The agreement also reflects growing pressure across the semiconductor supply chain to increase renewable energy usage as chipmakers and equipment suppliers face rising demands from customers to reduce greenhouse gas emissions.
Last month, Tokyo Electron Korea President & Representative Director Terius Roh told Maeil Business that South Korean semiconductor customers are placing greater emphasis on energy efficiency alongside delivery schedules as artificial intelligence infrastructure demand accelerates.
KT received approval from the Ministry of Trade, Industry and Resources last September to operate as a renewable electricity supplier. The company said it plans to expand renewable energy supply-chain operations based on its “KT Net-Zero” carbon monitoring and emissions management platform.
Lee Sun-ghil, technology division manager at Tokyo Electron Korea, said securing large-scale renewable energy supplies in Hwaseong, one of South Korea’s key semiconductor clusters, marks an important step in the company’s sustainability roadmap.
Kim Yong-nam, head of corporate business at KT’s enterprise division, said the agreement would serve as a new milestone for manufacturers transitioning to renewable energy.
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