HD Construction Equipment has officially signed direct power purchase agreements totaling 12.4 megawatts-peak with multiple renewable energy producers to supply electricity to its facility in Incheon. Through these strategic agreements, which represent a significant expansion of renewable power deals, the manufacturer aims to advance its long-term strategy of securing clean energy for its operational infrastructure. A power purchase agreement serves as a long-term commercial contract where a business purchases electricity directly from renewable energy generators, such as wind or solar farms, typically under fixed-rate conditions.
Under the newly established terms, the Incheon plant is scheduled to increase its proportion of renewable electricity from 19 percent to 43.9 percent by January 2027. Concurrently, operational facilities in Ulsan and Gunsan are projected to achieve renewable electricity coverage levels of 42 percent and 53.1 percent, respectively. Across all domestic Korean facilities, HD Construction Equipment expects its reliance on renewable energy to grow from the current 22 percent to 40.3 percent. This corporate shift is projected to reduce annual greenhouse gas emissions by 22,155 tons, an environmental reduction equal to the carbon absorbed by approximately 3.36 million 30-year-old pine trees.
HD Construction Equipment became the first business in the domestic construction machinery sector to join the global RE100 initiative in 2023, committing to transition to 100 percent renewable electricity by 2040. Launched in 2014 by the Climate Group alongside the Carbon Disclosure Project, RE100 encourages global enterprises to shift fully to clean power sources. A 2025 report published by the Korea Energy Economics Institute indicated that Korean firms disclosing progress under RE100 utilize renewable electricity for an average of approximately 12 percent of their total power needs.
Facility Upgrades and Operational Energy Efficiency
In addition to entering into external renewable power deals, the enterprise is actively deploying solar panels, procuring renewable energy certificates, and replacing high-emission equipment. The firm operates a dedicated factory energy management system designed to monitor power usage across operational processes. At the Incheon plant, this tracking system identified electricity losses resulting from aging transformers last year. Replacing these outdated units with high-efficiency equipment successfully decreased power losses by 45 percent.
“Expanding our use of renewable energy is a core task for securing sustainable manufacturing competitiveness,” a company official said. The enterprise stated it will continue to expand external procurement along with self-generation capacity to fulfill its 2040 RE100 commitment and achieve total carbon neutrality by 2050.