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SK vows to enhance local hydrogen ecosystem

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By Kim Hyun-bin

SK Corp. announced Tuesday that it would invest in hydrogen businesses to capitalize on the expected growth of the next generation eco-friendly energy source.

The holding company of SK Group, recently formed a special team consisting of 20 SK Innovation (SKI) and SK E&S personnel to work on ways to enhance the local hydrogen ecosystem, it added.

The team is in charge of gathering and initiating a core hydrogen business strategy.

The move by one of the nation's leading conglomerates comes as companies worldwide are implementing environment, social and governance (ESG) management styles.

SK Corp. logo
SK Corp. logo
The SK Corp. team's hydrogen business strategy is divided into three sectors. First, utilizing SK Group's infrastructure to establish a hydrogen mass production system for the local market; secondly, establishing a value chain to secure safety and efficiency; and thirdly, obtaining key hydrogen use technologies through investments and partnerships.

SK Corp. plans to fully utilize SK Group's gas station infrastructure to supply hydrogen and aims to enhance competition in the market.

Through its affiliate SK E&S will build liquid hydrogen production plant that could produce up to 30,000 tons annually by 2023 and plans to supply liquid hydrogen to the capital region.

SKI's affiliate SK Incheon Petrochem will also supply by-product hydrogen.

In addition, SK E&S plans to implement an eco-friendly "blue hydrogen" mass production system ― by 2025, it plans to be able to remove carbon dioxide from natural gas to produce 250,000 ton of the gas. In the long-term, the company also plans to produce "green hydrogen" from water using renewable energy including solar and wind power.

The global hydrogen market is in its initial stages. Specifically, the domestic market lacks filling and transportation infrastructure creating difficulties in operating hydrogen-powered vehicles. Existing hydrogen producing companies also haven't invested in infrastructure.

Through the integration of SK Corp.'s energy businesses' value chain, the company plans to establish infrastructure to create a virtuous local hydrogen ecosystem cycle.

By 2025, SK Corp, aims to produce 280,000 tons of hydrogen and use SK Energy's fueling stations and freight transportation rest areas as green energy service hubs.

"The group decision to push forward the hydrogen business means that SK Corp.'s investment portfolio is starting to transition in the eco-friendly sector," a company official said. "Through the accumulated knowhow of the energy business, we plan to establish an eco-friendly hydrogen ecosystem and become a leading ESG company in both the local and global markets."


Kim Hyun-bin hyunbin@koreatimes.co.kr


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