Chang Chun Group is pleased to announce the launch of Chem Union Renewable Energy Corporation to effectively respond to the demand for renewable energy and secure a smooth, sustainable supply. This renewable energy procurement and sales platform was created and funded by us and our counterparts in the Taiwanese petrochemical industry, Chimei Group and USI Group, with equal ownership shares of one-third each. Formally established in April of this year (2023), we plan to apply for a license and demonstrate our joint strong commitment to energy transformation as a testament of Taiwan''s petrochemical industry to move towards net-zero carbon emissions alongside the rest of the world.
Chao Huan-chang, General Manager and spokesperson of Chem Union, who also serves as the Manager of the Environmental Health and Safety Department of the Chang Chun Group, stated that in recent years Taiwanese petrochemical companies have faced pressure from the international supply chain to achieve net-zero carbon emissions, and thus must ensure smooth access to a sustainable supply of renewable energy, which is considered a strategic material. Therefore, in the first half of last year, all 3 companies independently decided to increase the proportion of renewable energy used. However, due to restrictions in the domestic renewable energy market, particularly the procurement thresholds imposed by offshore wind power developers, enterprises with a need for green energy are encountering significant challenges. As a result, with their objectives aligned, all 3 companies quickly reached an agreement to establish a joint venture company to overcome the difficulties faced by enterprises when signing Corporate Power Purchase Agreements.
According to the USI Group, all 3 companies have a strong desire to successfully secure a renewable energy supply by 2030. In the future, the Chem Union platform will act as a single entity to represent the 3 shareholders in meeting the expectations of renewable energy providers through collective procurement and contracting. For instance, in the case of offshore wind power, Chem Union aims to achieve a procurement target of 200 MW in its first phase, and looks forward to having more opportunities to work with domestic and foreign renewable energy providers.
According to CHIMEI Corporation, the name 'Chem Union' represents the 3 companies' petrochemical alliance and signifies their desire to pragmatically address the challenges of obtaining renewable energy in Taiwan through this alliance. In the future, if they can successfully sign CPPAs with offshore wind power developers, they will work to supply the needs of entire upstream and downstream supply chains starting from the 3 joint venture shareholders. After all, in addition to needing to reduce carbon emissions in scopes 1 and 2, the petrochemical industry has a high amount of carbon emissions in scope 3. Successfully obtaining green energy is essential to achieving comprehensive carbon reduction targets.
Chao Huan-chang concluded by stating that the English abbreviation for "Chem Union Renewable Energy" Corporation is "CURE", in hopes that the petrochemical industry can reduce its consumption of traditional fossil fuels through the expanded use of renewable energy, thereby further reducing its impact on the environment and biodiversity to truly manage to "cure" the Earth. We aspire for this collaboration model to succeed and become a model for the collective corporate procurement of renewable energy in Taiwan.