HWASEUNG Enterprise Signs 5th PPA
HWASEUNG Enterprise starts Phase–2 of the rooftop power program by signing 5th power purchase agreement with CNGRA.
Ho Chi Min City, Vietnam, 25th April 2023
- HWASEUNG Enterprise and CNGRA sign fifth PPA, taking the total signed capacity of the rooftop portfolio between the two parties to over 13 MWp
- This PPA starts Phase-2 of HWASEUNG Enterprise’s rooftop power program in a significant step towards securing 100% Renewable Energy (RE) by 2030
HWASEUNG Enterprise has reached another significant milestone in its ambitious commitment to the UNFCCC Fashion Industry Charter of 50% absolute carbon emissions reduction by 2030.
Industry leading footwear, headwear, and textile manufacturer, HWASEUNG Enterprise and CNGRA – a joint venture between Climate Investor One (CIO) and Norfund – have signed a fifth PPA in Vietnam. This starts Phase-2 of HWASEUNG Enterprise’s solar rooftop program and advances CNGRA’s mission to support corporate clients to accelerate the clean energy transition.
The latest PPA is set for 18 years and signifies the installation of the rooftop solar system with a capacity of 828 kWp at HWASEUNG Enterprise’s Unipax Vi Thanh premises in Hau Giang Province, Vietnam, which currently supplies headwear and apparel to Nike and Fanatics. The rooftop plant will produce around 1100 MWh of electricity annually and save more than 500 tCO2e per year from the facility. With this additional PPA, the total signed capacity of the rooftop portfolio between both parties increases to over 13 MWp in Vietnam alone, having a significant impact on the scope 2 element of HWASEUNG’s footprint, and reducing the scope 3 emissions of clients like Nike, Fanatics and adidas.
On signing this PPA, Hugh Hamill, Strategic Advisor of HWASEUNG Enterprise, shares: “Sustainability is integral to our business strategy and Climate Action is central to our sustainability agenda. In order to fulfil our UNFCCC commitment, we are exploring all options for sourcing of renewable energy across all geographies of our operations. This PPA is a major milestone in our decarbonization journey.”
act renewable, a boutique advisory firm focused on the transition to renewables, has been supporting HWASEUNG Enterprise with its ambitious decarbonization journey over the last 2.5 years across target setting, renewable energy roadmap development, energy assessments and more. The advisory firm most recently facilitated the commercial negotiations between HWASEUNG Enterprise’s sustainability team and the responsible teams from Climate Fund Managers and Norfund for this fifth PPA, resulting in a successful engagement for both parties.
“Climate change is an existential threat, and a fast-paced transition to clean energy is very much dependent on the private sectors. As such, we are honored to join our strategic client – HWASEUNG Enterprise – to embark on this important step towards
net zero emission. We hope that this PPA will be a catalyst for stronger collaboration between the two companies in the future,” added Kelvin Vuong, General Director of CNGRA.
As a key supplier to leading global brands, HWASEUNG Enterprise is a signatory to UNFCCC Fashion Industry Charter for Climate Action and has committed to reduce 50% GHG emissions by 2030. As part of its UNFCCC commitment, the company has planned to secure 100% renewable energy by 2030 and this Phase-2 PPA is a significant step towards securing 100% renewable energy.
Renewable energy forms a key lever to reducing HWASEUNG Enterprise’s GHG emissions as part of its decarbonization roadmap. The company has decided to secure renewable energy by signing PPAs for on-site rooftop PV installations in a phased manner across all operations. A Phase-1 PPA was signed in March 2022 for four facilities in Vietnam. Taking the renewable energy journey further, the company has now started implementing a Phase-2 PPA with this PPA for covering one more facility in Vietnam and Indonesia with on-site rooftop PV installation.
Next on its renewable energy journey,
HWASEUNG Enterprise is in the process of finalising a PPA for the installation of on-site rooftop PV installations at one of its major facilities in Indonesia while also exploring Vietnam’s Direct PPA (DPPA) scheme. The company is simultaneously concentrating on energy efficiency across all operations and has carried out third party energy assessments of manufacturing operations in collaboration with the Mekong Sustainable Manufacturing Alliance (MSMA). HWASEUNG Enterprise is also investing in the implementation of energy conservation initiatives and exploring the phasing out of coal by 2025, as two manufacturing facility uses a coal boiler. Comprehensive feasibility studies for a coal to biomass transition and trials with biomass are already underway with the support of trusted partner, act renewable.
About HWASEUNG Enterprise
HWASEUNG Enterprise is a leading Global manufacturer offering a complete head to toe proposition producing Athletic Footwear, Headwear and Apparel. Its primary manufacturing & operations footprint span Vietnam, Indonesia and China. The Enterprise produces for brands such as adidas, Nike, Lacoste, and Fanatics among others. For more information: www.hsenterprise.co.kr
CN Green Roof Asia (“CNGRA”) is a joint venture between Climate Investor One (CIO) and Norfund, set up to invest in commercial and industrial (C&I) solar projects in South-East Asia, particularly Vietnam and Indonesia. CIO, managed by Climate Fund Managers, is a Dutch & EU-sponsored investment fund for renewable energy infrastructure projects in emerging markets, while Norfund is an investment fund owned by the Norwegian Government, designed to support Norwegian development policy.
About act renewable
act renewable is an independent advisory firm on a mission to help companies achieve their full renewable energy potential. A boutique advisory focused on the transition to renewables, it blends a global knowledge base with corporate sustainability and local renewable energy market expertise, building tailor-made roadmaps and guiding implementation processes to support corporates accelerate the renewable energy transition.
For more insights on the corporate renewable energy space across Asia, join our upcoming Asia webinar series where we will share experiences from the front line of working with corporates and brands on their renewable energy transition.
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