Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
'SK E&S to become W35 tril. eco-friendly energy company by 2025'
SK E&S CEO Choo Hyeong-wook speaks at a media day event at the Four Seasons Hotel in Seoul, Wednesday, to explain the company's four key eco-friendly businesses sectors. Courtesy of SK E&S
By Kim Hyun-bin
By Kim Hyun-bin
SK E&S, the natural gas production affiliate of SK Group, aims to boost its corporate value five-fold from the current 7 trillion won ($6 billion) to 35 trillion won by 2025, through large investments in the eco-friendly energy sector.
“We did not stand still, as the No.1 city gas company in the past, but rather challenged ourselves to become a leading LNG business, operating the largest LNG value chain in the country,” SK E&S CEO Choo Hyeong-wook said at a news conference.
“In our four key eco-friendly businesses ― hydrogen, renewable energy, energy solutions and eco-friendly liquefied natural gas (LNG)―we will establish a differentiated green portfolio to lead the global energy ecosystem of the future.”
The company is in the process of increasing its hydrogen production capability and aims to produce 30,000 tons of liquefied hydrogen annually, as well as 25,000 tons of blue hydrogen by 2025 to become the No. 1 player in the world. It will utilize the company's LNG value chain, which the CEO says is “very similar” to the hydrogen value chain structure the company plans to establish.
“The hydrogen businesses is in the early stages worldwide, but it is growing at a rapid pace. Currently, there is no company dominating the sector,” Choo said. “We will utilize our LNG infrastructure to set up our hydrogen business infrastructure ― a total integrated system that includes all aspects of business operations, upstream to downstream. We can do so as the LNG infrastructure is very similar to that of the hydrogen business structure.”
SK E&S also aims to produce 7 gigawatts (GW) of renewable energy annually and to obtain 1.2 million tons worth of carbon credits by 2025, in line with the company's aim of becoming a key global renewable energy trading firm.
In the energy solutions sector, SK E&S acquired Busan-JungKwan Energy in January, to establish an optimum energy solutions platform. SK E&S is in the process of acquiring another major grid energy solutions firm in the U.S.
SK E&S plans to back SK Group's hydrogen business vision and become a key affiliate at the forefront of establishing a local hydrogen ecosystem. The first stage involves completing the construction of the world's largest liquefied hydrogen plant in Incheon, capable of producing 30,000 tons annually by 2023. The second stage includes utilizing carbon capture storage (CCUS) technology to reduce CO2 emissions by eco-friendly means, to produce 250,000 tons of blue energy annually by 2025, while establishing 100 hydrogen charging stations nationwide.
Also, the company plans to expand its global presence in the hydrogen sector in cooperation with leading hydrogen companies and governments, including the U.S. hydrogen specialist, Plug Power, China's state-run energy company, China Huadian Corp. and the Vietnamese government, in order to expand its presence in the region.
Lastly, the CEO pointed out that there needs to be more government support measures for hydrogen initiatives for the budding hydrogen industry in Korea.
“There are no safety regulations or laws for the liquefied hydrogen industry, making it difficult to get approval for our liquefied hydrogen plant and charging stations,” Choo said. “The government needs to give construction approval and should provide large incentives as well as pass helpful policies.”