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Hyundai Motor inks 174-MW RE deal for EV plant in US

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Large Corporate 23 Apr 2024 12:42 PM IST Economic Times

In order to fuel its planned electric vehicle (EV) plant in the United States with renewable energy, Hyundai Motor Group has entered into a 174 megawatt power purchase agreement (PPA) with a solar energy project headed by Matrix Renewables of Spain. Hyundai Motor Group Metaplant America, the South Korean automaker's first dedicated EV mass production plant in North America, is currently under construction in the state of Georgia.

The 15-year PPA with the Stillhouse Solar Project, led by Matrix Renewables, will run from 2025 to 2040. The energy will also be used in the electrification-related operations of Hyundai Mobis' North American business and Hyundai Steel's production plant in Georgia, reports Yonhap news agency. According to Hyundai, the deal marks the biggest PPA signed by a South Korean company for the use of renewable energy at its US facilities.

Financial terms weren't disclosed. Hyundai said the expected carbon reduction effect through the deal amounts to approximately 140,000 tonnes annually, which roughly amounts to the carbon emissions from around 84,000 midsize sedans over the course of one year. "This contract marks a significant step for the group in securing renewable energy power," a Hyundai Motor official said, adding that the group will further invest in the transition to renewable energy for its US facilities in the future.