Countries worldwide are joining forces to reduce greenhouse gases (GHGs), the primary cause of global warming. In particular, the Paris Agreement, which took effect in January 2021, has strengthened international efforts to combat climate change. This agreement mandates GHG reductions to prevent a further rise in global temperatures. In response, global corporations are integrating GHG reduction efforts into their ESG (Environmental, Social, and Governance) management strategies.
LG Energy Solution is also responding proactively. The company has established an energy and greenhouse gas (GHG) management system to monitor energy consumption and GHG emissions while making multifaceted efforts to improve energy efficiency.
Establishing a Global Energy Working Council to achieve the Energy Management System Standard
LG Energy Solution has established an organization for systematic energy and greenhouse gas (GHG) management. This council consists of leaders from each of the global sites and the relevant departments for energy and GHG management. The council is dedicated to developing and sustaining an energy and GHG management system and has been operating monthly meetings to ensure continuous improvement and facilitate the sharing of best practices among entities within the corporation.
The Global Energy Working Council is also engaged in various initiatives. Currently, LG Energy Solution has obtained ISO 50001 certification, the energy management system standard, for Korea (Ochang Energy Plant 1) and three plants in Nanjing, China. This certification is granted to organizations that demonstrate efficient energy use, effective management, and continuous improvement. LG Energy Solution plans to share the energy management know-how that enabled ISO 50001 certification through the Global Energy Council and expand the certification to other global sites.
Monitoring Energy Use and Tracking GHG Emissions
LG Energy Solution has implemented an advanced system for efficient energy management. The Energy & Utility Management System (EUM) enables real-time monitoring of energy consumption by each piece of equipment for every business site, allowing for comparative analysis over different periods to be strictly managed.
The company also uses the Emissions Trading System (ETS) to collect monthly energy usage data from domestic and international business sites and calculate GHG emissions based on emission factors to manage them systematically. ETS is a scheme that allows countries or companies exceeding their allocated greenhouse gas emission limits to purchase allowances from those with surplus quotas to meet their targets. As a result of management based on this system, total GHG emissions decreased in 2023 despite an overall increase in energy consumption. This was achieved through the transition to renewable energy and enhanced energy efficiency, even as corporate energy use grew for the year.
In 2021, a total of six plants (Headquarters in Yeouido / R&D Campus in Magok, Gwacheon / Ochang Energy Plant 1, 2 / R&D Campus in Daejeon) were designated under the GHG emissions trading system (ETS). These sites receive third-party verification of their GHG emissions annually and report the results to the Ministry of Environment.
The Results of Rigorous Energy and GHG Management
What kind of results has LG Energy Solution achieved through the implementation of its own energy and GHG management system?
LG Energy Solution sets annual energy reduction targets to enhance awareness among employees and executives regarding energy and GHG reduction, thereby promoting substantive reduction activities. The energy reduction targets have increased each year—from 1,430 TJ in 2021 to 1,741 TJ in 2023—and since 2022, LG Energy Solution has exceeded its planned reduction targets.
First, the company reduced steam consumption by recovering waste heat from DEH (dehumidifiers). The hot react air (around 60°C) discharged after passing through the dehumidifier rotor was previously exhausted directly outdoors, leading to energy loss. To prevent this, LG Energy Solution installed a heat exchanger to recover the waste heat from the react air, thereby reducing steam usage.
Next, electricity consumption was also reduced by introducing a natural cooling system in winter. Dry rooms require low humidity, which in turn requires cold water to be constantly generated—normally by operating energy-intensive chillers. To cut electricity use, LG Energy Solution installed a natural cooling system that actively utilizes cold outdoor air during winter to minimize chiller operation.
Lastly, the company reduced electricity consumption in electric heaters used for air dryer regeneration by using high-temperature compressed heat. Normally, to remove moisture from the air dryer’s regeneration unit, air at room temperature (about 10–20°C) needs to be heated to around 200°C with an electric heater, which consumes a large amount of electricity. To solve this, the company came up with a plan to utilize high-temperature compressed heat by installing and connecting a bypass pipe to the regeneration unit. This reduced the electric heater load by approximately 35%.
LG Energy Solution is making dedicated efforts to protect the global environment through systematic energy and GHG management. Stay tuned for LG Energy Solution’s continued efforts toward a more sustainable future!
