Merck Life Science, a Germany-headquartered global science and technology leader, said on the 5th that it signed a 20-year power purchase agreement (PPA) with SK Innovation E&S.
Through this agreement, Merck Life Science will receive 16 megawatts (MW) of renewable energy from SK Innovation E&S.
The deal was signed to provide new renewable energy on a long-term basis to Merck's production facilities in Daejeon and Songdo, and it is Merck's longest renewable energy contract in the Asia-Pacific region.
The collaboration will supply about 21,000 MWh of renewable energy annually. The company said this could cover about 75% of the total electricity demand at the Merck Life Science division's Korea business sites. The power purchase agreement is scheduled to take effect in Dec. 2027.
This follows Merck's virtual power purchase agreements (VPPA) signed in Europe and North America and the expansion of renewable energy adoption across its production facilities worldwide, as part of Merck's global renewable energy strategy.
Tim Jaeger, head of strategy at Merck Life Science, said, "This collaboration is a strong example of Merck's long-term commitment to building a sustainable manufacturing environment," adding, "By expanding the use of renewable energy at business sites in Korea, we expect to fulfill Merck's environmental responsibilities while also contributing to our customers' realization of sustainable value."
Including this agreement, Merck said it expects to swiftly achieve its goal of converting 80% of total purchased electricity to renewable energy by 2030 and cutting carbon emissions by 50% to realize climate-neutral operations by 2040, based on its global renewable energy portfolio.