It was reported that SK Holdings, the holding company of SK Group, decided to make a large equity investment of tens of billions of won in U.S.-based hydrogen company Monolith and will sign an agreement this month. SK is expanding its position in the hydrogen energy sector, which is garnering attention as a key investment area for the environment, society, and corporate governance (ESG).
According to the industry on Tuesday, SK Holdings will participate as a key strategic investor in the Monolith funding program organized and led by NextEra Energy, a U.S.-based energy company. Specific equity and investment amounts are being discussed.
Monolith, which was founded in 2012, has its own technology of extracting carbon dioxide produced from hydrogen extraction of carbon process into solid carbon black, which is used as a material for rubber or ink. The technology is in-between green hydrogen produced 100 percent from hydrolysis and blue hydrogen produced from carbon process with reduced greenhouse gasses.
Monolith is a highly profitable company, as it not only produces carbon black with the technology, but also manufactures agricultural fertilizer by mixing nitrogen gas into extracted hydrogen. The company is currently building a pilot plant with about 100 billion won investment in Hallam, Nebraska and recently made an announcement on the one-trillion-won investment plan for the second plant. SK will participate in the funding as a strategic investor to continue its technological partnership with and production investment in Monolith.
Hydrogen energy is one of the new major environment-friendly business areas, as well as the key ESG investment area. SK will further expand its clean hydrogen value chain with the upcoming investment. In addition, SK Holdings has been accelerating its hydrogen-centered environment-friendly energy businesses by setting up a new organization in charge of hydrogen businesses and building manufacturing facilities for liquid hydrogen in South Korea. “Building a hydrogen business value chain is the key to SK’s transition to environment-friendly portfolio,” the president of SK Holdings Jang Dong-hyeon recently said.
Do-Young Kwak email@example.com