Hyundai Motor Group said on Monday it has signed a 174-megawatt power purchase agreement (PPA) with a solar energy project led by Spain’s Matrix Renewables to power its envisioned electric vehicle (EV) plant in the United States with renewable energy.

The 15-year PPA with the Matrix Renewables-led Stillhouse Solar Project from 2025 to 2040 will be used to operate Hyundai Motor Group Metaplant America, the South Korean auto giant’s first dedicated EV mass production plant in the North American country, currently under construction in the state of Georgia.

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The energy will also be used in the electrification-related operations of Hyundai Mobis’ North American business and Hyundai Steel’s production plant in Georgia, reports Yonhap news agency.

According to Hyundai, the deal marks the biggest PPA signed by a South Korean company for the use of renewable energy at its US facilities. Financial terms weren’t disclosed.

Hyundai said the expected carbon reduction effect through the deal amounts to approximately 140,000 tonnes annually, which roughly amounts to the carbon emissions from around 84,000 midsize sedans over the course of one year.

“This contract marks a significant step for the group in securing renewable energy power,” a Hyundai Motor official said, adding that the group will further invest in the transition to renewable energy for its U.S. facilities in the future.

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