Hyundai Glovis (KRX:086280) signed a long-term virtual power purchase agreement with Hyundai Engineering and Construction (KRX:000720) to supply 127 gigawatt-hours of renewable energy to the latter over a period of 20 years, Pulse News reported Friday.

Shares of Hyundai Engineering and Construction fell nearly 3% in Monday morning trade.

The electricity, primarily solar-generated, will be certified as renewable by authorities and gradually applied across Hyundai Glovis' sites, the report said.

The VPPA, a key strategy under the RE100 initiative, allows Hyundai Glovis to promote carbon neutrality by indirectly investing in renewable energy infrastructure, it said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)