On the 11th, LOTTE Chemical signed a power purchase agreement with K-water (Korea Water Resources Corporation) Hapcheon Dam Floating Solar Power Project Phase 2 at LOTTE World Tower EBC in Seoul.

Hapcheon Dam Floating Solar Power Project Phase 2, led by a special purpose company (SPC) established by K-water, involves installing a 20 MW power generation facility on the surface of Hapcheon Dam in Daebyeong-myeon, Hapcheon-gun, Gyeongnam. The project, with a total investment of 36.6 billion KRW, is set for completion by December 2025. The facility will generate an annual average of 26,618 MWh, enough to cover the yearly electricity consumption of approximately 10,000 households.

This is the second floating solar power project at Hapcheon Dam, following the first phase (41.5 MW), which began operations in 2021. Through this agreement, LOTTE Chemical will receive renewable energy produced by the floating solar power system via direct power purchase.

Notably, this agreement marks the first direct power purchase for a floating solar project initiated by K-water. The project is structured as a revenue-sharing model with local residents, offering a blueprint for future floating solar projects by incorporating community benefit-sharing.

LOTTE Chemical, under its ESG vision and strategy "Green Promise 2030," is actively working to combat climate change. The Company plans to achieve RE100 by 2050 through the adoption of self-installed renewable energy facilities, direct power purchase, and the acquisition of Renewable Energy Certificates (RECs).

Lee Hun Ki, the President & CEO of LOTTE Chemical, stated, "LOTTE Chemical recognizes environmental value as a core element of our business operations and is engaged in various activities to practice environmental management.” “We will continue to implement diverse strategies to achieve RE100, contributing to carbon neutrality."

Yun Seok Dae, the CEO of K-water, remarked, "I hope this agreement will drive stable eco-friendly energy purchase for key export companies that are essential to the nation’s economic growth, while also fostering regional development.” “As a public corporation specialized in water, K-water will continue to leverage water energy and infrastructure to support national carbon neutrality and expand green exports."

Additionally, K-water has been actively supporting domestic export companies in overcoming trade barriers and challenges through direct power purchase and other initiatives. The corporation, which became the first domestic public institution to join the global RE100 in 2021, continues to lead climate crisis efforts in collaboration with the Ministry of Environment by utilizing water energy, including hydropower and tidal energy.