SK Innovation Adds 'Green' to Refining and Petrochemicals After 60 Years of Leadership

SK Innovation 'Story Day'

[Asia Economy Reporter Kim Hyewon] SK Innovation is applying 'green (eco-friendly)' principles to its core refining and petrochemical businesses, which have driven the company's growth over the past 60 years. The ultimate goal of SK Innovation's green strategy can be understood from the remarks of Kim Jun, SK Innovation's CEO, who stated that it aims to leave no trace of fossil fuel usage.

At SK Innovation Story Day on the 1st, the first strategy revealed by the management was a business that recycles 100% of waste plastics. Centered on its chemical subsidiary SK General Chemical, the company plans to introduce an urban oil field business model that converts waste plastics back into petroleum. The goal is to completely transform into a recycle-based chemical company that produces plastics from these raw materials. Na Kyungsoo, President of SK General Chemical, emphasized, "Compared to glass and steel, plastics are eco-friendly in the production process, but the low recycling rate is a problem," adding, "As a recycling and eco-friendly materials company, we will turn the plastic issue into a growth opportunity rather than a crisis."

SK General Chemical has set a goal to recycle 100% of the plastics it produces domestically and internationally (2.5 million tons annually by 2027) and to achieve 100% in the proportion of eco-friendly products that reduce usage and are recyclable, based on its proprietary technologies and capabilities secured through global mergers and acquisitions (M&A). President Na stated, "SK General Chemical plans to generate more than 600 billion KRW in EBITDA from green businesses alone by 2025," and predicted, "This will exceed half of the total 1.1 trillion KRW, surpassing existing businesses."

The petroleum business will significantly improve its operational structure focusing on minimizing carbon emissions in areas such as crude oil refining, trading, and exploration & production (E&P). The company plans to simultaneously pursue various approaches including operational optimization by converting all business sites to low- and decarbonization systems, reducing production of transportation fuels with declining demand while increasing petrochemical product output, developing carbon capture and storage technologies, and expanding bio-renewable energy businesses. Additionally, the petroleum business will transform its gas stations and customers into a 'green platform' concept, sequentially introducing energy solution businesses that produce and sell eco-friendly electricity and hydrogen, as well as subscription models for eco-friendly vehicles.

This content was produced with the assistance of AI translation services.