SK signs deal to form renewable energy JV with KKR
SK Group Chairman Chey Tae-won speaks during a meeting at Cheong Wa Dae, Seoul, Monday. Yonhap
SK Inc., SK Group's holding company, said Wednesday that it has signed a deal with Kohlberg Kravis Roberts (KKR) & Co., a U.S. investment firm, to establish a joint venture for renewable energy as part of its business rebalancing efforts in response to rising energy demand.
SK Group's three energy-related affiliates — SK Innovation, SK ecoplant and SK Discovery — are currently transferring their respective renewable energy assets to KKR through business and share transfers for the establishment of the new JV, according to SK Group.
The new HoldCo, a 49:51 JV between SK and KKR, is scheduled to be launched by the end of this year.
The JV will have a portfolio covering all sectors of renewable energy generation except hydrogen, including solar power, offshore and onshore wind power, fuel cells and energy storage systems (ESS).
Its operating capacity will total about 1.7 gigawatts (GW), with plans to expand it to 10 GW by 2031.
SK said the deal will provide an opportunity to strengthen the foundation of its renewable energy business while continuing to restructure its portfolio to enhance capital efficiency and business competitiveness.