Nexen Tire accelerates renewable energy transition via PPA and solar expansion

Nexen Tire is accelerating its transition to renewable energy at its domestic production facilities in South Korea. The company has signed a direct Power Purchase Agreement (PPA) with SK E&S to secure renewable electricity.

Starting in November, the company's Yangsan plant will receive approximately 4MW of renewable energy from a combination of onshore wind and solar power. This supply, totaling about 6GWh annually, is expected to reduce greenhouse gas emissions by approximately 2,700 tons per year. Additionally, the company is reviewing the installation of solar self-generation facilities at the Yangsan plant.

At the Changnyeong plant, Nexen Tire plans to expand its solar power capacity by transitioning existing leased rooftop facilities to self-generation models. The company aims to establish over 10MW of solar power facilities at the Changnyeong site by 2028, which would cover roughly 9% of the plant's total electricity consumption.

These initiatives are part of a broader strategy to meet the increasing greenhouse gas reduction requirements from European premium automotive clients, such as Mercedes-Benz, BMW, Audi, and Porsche. Nexen Tire has previously received approval from the Science Based Targets initiative (SBTi) to reduce its Scope 1 and 2 emissions by 58.8% by 2034 compared to 2023 levels.