Hyundai Motor Group has signed a power purchase agreement for a 147MW solar power project to operate its electric vehicle plant in Georgia using renewable energy.
On the 22nd, Hyundai announced that it has recently entered into a long-term power purchase agreement (PPA) for 15 years (2025-2040) with the new solar energy project led by the Spanish renewable energy developer Matrix Renewables.
This is the largest PPA signed by a domestic company for the use of renewable energy at a U.S. operation.
The contract includes participation from four Hyundai companies: the new EV plant ‘Hyundai Motor Group Metaplant America (HMGMA)’ in Georgia, as well as the North American Electrification Corporation (MNAe), Hyundai Steel’s Georgia Corporation (HSGA), and Hyundai Transys Georgia P/T Corporation (HTGP), all of which have entered the local market.
This PPA is significant as it is not merely a supply contract with existing renewable energy facilities but involves the procurement of renewable energy from new solar power facilities linked to Hyundai’s large-scale orders, making it more positive in terms of global carbon reduction.
It is estimated that the expected carbon reduction effect from the energy procurement will be approximately 140,000 tons annually, equivalent to the amount absorbed by about 84,000 compact sedans over the course of a year.
※ Carbon emission for compact sedans: 112g/km, average annual driving distance for vehicles: 15,000km, based on the EPA power emission factor (2024) in the U.S.
The solar project from which Hyundai Motor Group will procure renewable energy (Project Name: Stillhouse Solar) is a 210MW power facility currently being developed by Matrix Renewables in Bell County, Texas, with a goal of commercial operation by October 2025.
Hyundai secured 147MW, which is 70% of the total power capacity of 210MW, and plans to procure renewable energy amounting to 378GWh (gigawatt-hours) annually. This is enough energy for about 100,000 households in South Korea for one year.※ Based on the average monthly power consumption of a four-person household: 307kWh (2020)
The solar renewable energy secured this time will be used by the HMGMA electric vehicle plant, along with parts for electrification and electric vehicle steel supplied by MNAe and HSGA, while Hyundai Transys plans to utilize it for its Georgia seat factory that supplies seats to HMGMA.
Through this, HMGMA has established a renewable energy usage system not only for the finished vehicle plant itself but also across its supply chain.
This contract is significant as it marks a serious commitment from Hyundai Motor Group toward securing renewable energy.
This is the first contract signed at the group level with participation from multiple affiliates, and by promoting a joint purchasing agreement among overseas operations located in Georgia, it significantly reduced procurement costs compared to individual company contracts.
Hyundai Motor Group plans to further enhance cost efficiency and accelerate the transition to renewable energy through integrated procurement and long-term contracts at the group level.
A Hyundai Motor Group spokesperson stated, “Starting with this PPA with the solar power project, investments and contracts for the transition to renewable energy at our U.S. operations will proceed sequentially,” adding, “We plan to continue fostering cooperation among group companies to secure effective renewable energy.”
By Lee Sang-jin daedusj@autodiary.kr