SK Group has decided to establish a hydrogen business promotion group and launch hydrogen business officially. It plans to accelerate its ESG (Environmental, Social, and Corporate Governance) management and elevate its status as a global corporation even higher.
SK Holdings announced on Tuesday that that a “hydrogen business promotion group” that is made up of 20 professionals from SK Innovation, SK E&S, and other SK Group’s subsidiaries has been established. The group will gather key abilities from the group and implement strategies to promote the group’s hydrogen business. SK Holdings has been working on strategies on hydrogen business and looking into validity of hydrogen business since early this year.
The holding firm will promote hydrogen business through three different ways such as entering the South Korean hydrogen market by establishing a hydrogen mass-production system, operating a value chain of hydrogen production, distribution, and supply, and investing in key hydrogen technologies and targeting foreign markets.
SK Holdings will actively utilize the group’s infrastructures. With SK E&S at the center, the firm will construct a liquid hydrogen production plant that will be able to produce 30,000 tons of liquid hydrogen annually starting from 2023. Liquid hydrogen produced from the plant will be supplied to metropolitan areas in South Korea. Byproduct hydrogen that will be used in the production will be supplied by SK Innovation. Particularly, because SK Incheon Petrochem that is under SK Innovation is located near a metropolitan area that is the biggest buyer of hydrogen energy in South Korea, a cost issue from long-distance transportation can be relieved.
SK Holdings will also operate a mass-production system of eco-friendly “blue hydrogen”. Blue hydrogen is eco-friendly hydrogen that has removed carbon dioxide that is developed during hydrogen production process particularly LNG (Liquid Natural Gas) reforming process through CCUS (Carbon Capture, Utilization, and Storage) technology. SK E&S directly imports 3 million tons of LNG annually. On top of that, 250,000 tons of blue hydrogen will be produced additionally starting from 2025.
“In a long term, we plan to push for “green hydrogen” business that utilizes renewable energies such as solar power and wind power.” said a representative from SK Group. “We plan to complete an eco-friendly hydrogen supply system that does not create carbon dioxide.” Green hydrogen is hydrogen that is produced without creating carbon dioxide by using electrolysis through new and renewable energy generation.
SK Holdings will also manage hydrogen value chain. During this process, it plans to actively utilize SK Energy’s gas stations and freight transportation truck rest stops as green energy service hubs.
The holding firm will also target the global hydrogen market at the same time. It plans to either invest in foreign companies that possess fundamental technologies related to hydrogen or sign global partnerships. It will look to secure competitive edge in hydrogen business early and enter different Asian markets such as China and Vietnam.
SK Group will look to accelerate its ESG management through hydrogen business. SK Holdings is expecting an increase in NAT (Net Asset Value) to $27.1 billion (30 trillion KRW) by establishing a hydrogen ecosystem.
“Our decision to push for hydrogen business indicates that the group plans to expand its investment portfolio to green industries.” said a representative from SK Holdings. “We plan to focus our abilities in energy business in creating an eco-friendly hydrogen ecosystem and establish ourselves as a leader in ESG management globally.”
Staff Reporter Ryu, Taewoong | bigheroryu@etnews.com