PV system and new power purchase agreement increase CHT China’s share of renewable energies

Climate change is one of the most urgent challenges facing humanity and our beautiful planet. CHT, as a global group, is aware of its corporate responsibility towards climate protection and is fully committed to taking urgent and transformative action.

The emission reduction targets developed by CHT Group have been validated by the Science Based Targets initiative (SBTi), making us one of the first chemical companies in the world to have a net-zero climate target aligned with the 1.5-degree target set by the SBTi. Specifically, CHT plans to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 42.4 % by the end of 2030 and reach net-zero GHG emissions across the entire value chain by 2045.

Over the past few years, CHT China has placed great emphasis on more responsible resource usage, aligning local sustainability targets with those of the group and pushing hard to exceed expectations where possible. The latest step in our improvement journey sees the installation of a roof-mounted solar PV system at the Shanghai site. Commissioned in late December 2024, this initiative aims to replace 40 % of the current fossil-based energy source with renewable, solar generated power.

The Solar PV project, which was installed under a power purchase agreement (PPA) has a capacity of 1280 kWp and is expected to generate approximately 1300 MWh per year. The majority of the electricity generated will be used directly by CHT Shanghai, while any surplus generation will be sold to the grid. The installation covers approximately 6900 m², using more than 1800 PV panels mounted on our warehouse roofs and a newly constructed carport (providing 42 parking spots and 6 EV charging stations).

NOTE: Under a Power Purchase Agreement (PPA), the solar PV system is not owned or maintained by CHT, but CHT is able to purchase the generated electricity at a discounted rate (compared to the grid supply). This allows CHT to substitute fossil-based energy sources with renewable ones, while significantly lowering electricity costs and without making any investment.

In recognition of this project, and other efforts made by CHT Shanghai, the company was awarded the “Green Energy Practice Award” by the Shanghai Fengxian District Environmental Science Society in January 2025.

The Shanghai Fengxian District Environmental Science Society, under the support and guidance of the Fengxian District Ecological Environment Bureau, is committed to promoting the innovation and application of environmental protection technology and leading the environmental protection and sustainable development of Fengxian District. This honor is an affirmation of our company’s green transformation efforts and sustainable development work.

This initiative goes a long way towards achieving our Scope 2 GHG emission reduction targets, and we are already exploring a similar arrangement at our Dongguan Site. We still have many opportunities to reduce our total energy demand and drive utilization efficiency in our China plants. During 2025, we will focus on reduction opportunities around our significant energy users and we look forward to sharing positive results.