Global business is increasingly transforming itself into a more sustainable, carbon-neutral economy.
As part of our commitment to Environmental, Social, and Governance (ESG) principles, SK Group firms are redirecting their investments and operations in order to minimize and eventually eliminate their net carbon emissions. Hydrogen is an alternative energy source that SK enterprises and partners are developing to assist us in meeting our environmental goals.
Monolith, a United States-based firm in which SK Inc. is a strategic investor, has achieved a new hydrogen energy milestone. Monolith stated that it has received conditional permission from the United States Department of Energy (DOE) for a $1.04 billion loan to expand its clean hydrogen and carbon black manufacturing plants in Nebraska. This first loan from the DOE Loan Programs Office in five years demonstrates the economic viability of Monolith’s pyrolysis technology.
The DOE financing is significant news for SK’s commitment to alternative energy development. According to the US Energy Information Administration, fossil fuels such as coal, natural gas, and petroleum accounted for 80 percent of both energy production and consumption in the United States in 2019.
This new loan from the US Department of Energy is noteworthy because it enables the growth of clean hydrogen and carbon black production. Monolith anticipates that expanding its Olive Creek facility in Nebraska will prevent the emission of one million tons of greenhouse gases into the environment each year when compared to conventional production procedures.
For SK, the announcement reinforces our bigger, global hydrogen strategy. In late 2020, SK Inc., SK Group’s holding company, established a Hydrogen Business Center comprised of energy professionals from SK E&S and SK Innovation to develop a complete hydrogen value chain from production to consumption. This group has been instrumental in a number of our recent investments and collaborations focused at advancing the hydrogen economy.
Along with Monolith, SK firms are investing in and forming collaborations to improve hydrogen energy in the United States and around the world. Additionally, they are attempting to commercialize the technology by establishing a hydrogen ecosystem in Korea.
As we enter the new year, SK remains dedicated to investing in and growing businesses that contribute to a more carbon-neutral, environmentally friendly global economy. Our work in the United States has sparked innovation in a variety of areas, including electric vehicle batteries, energy storage, alternative foods, and recycled materials. We anticipate even more favorable momentum in 2022 as we work to bring new, clean energy sources to global markets.
