SK Corp. Collaborates with US Monolith to Pioneer Domestic Turquoise Hydrogen Market

Signing of Memorandum of Understanding (MOU) for Establishing a Joint Venture for Domestic Blue Hydrogen and Solid Carbon Projects

Jang Dong-hyun, President of SK Inc., and Rob Hanson, CEO of Monolith, are taking a commemorative photo after signing a Memorandum of Understanding (MOU) for the establishment of a joint venture and business cooperation.

[Asia Economy Reporter Kim Hyewon] SK Inc. is establishing a joint venture in South Korea with Monolith, a U.S. company that succeeded in commercializing turquoise hydrogen for the first time in the world, and is entering the turquoise hydrogen and solid carbon markets.

On the 13th, SK Inc. announced that President Jang Donghyun and Monolith CEO Rob Hanson, along with executives from both companies, met to discuss cooperation plans and signed a memorandum of understanding (MOU) on this matter.

President Jang said, "SK and Monolith are joint partners in the hydrogen business. Through close cooperation, the two companies will develop turquoise hydrogen as a key part of SK's hydrogen production portfolio and jointly promote the development of a carbon-zero solid carbon business." CEO Hanson also stated, "We will continue to cooperate with SK to strengthen global-level clean hydrogen production capabilities."

Turquoise hydrogen is hydrogen produced by injecting natural gas, primarily methane (CH4), into a high-temperature reactor and decomposing it into hydrogen (H2) and solid carbon (C). Since no carbon dioxide is generated during the production process, it is classified as eco-friendly clean hydrogen along with blue hydrogen.

Turquoise hydrogen has the advantage of not requiring carbon capture and storage (CCUS) processes necessary for blue hydrogen production and can be produced with less electricity compared to green hydrogen. Therefore, it holds great value as a strategic alternative in the transition from blue hydrogen to green hydrogen. An SK Inc. official said, "By adding a turquoise hydrogen portfolio to the hydrogen business value chain, we can further enhance the execution power of our hydrogen business roadmap." Demand for eco-friendly solid carbon is increasing, especially in the global tire and steel industries actively pursuing decarbonization, as well as in the electric vehicle battery market, which is expected to lead to high market growth and profitability in the future.

Monolith, located in Nebraska, USA, was established in 2012. The company possesses proprietary technology that produces high-purity turquoise hydrogen by injecting natural gas into a self-developed reactor and thermally decomposing it. In particular, Monolith produces eco-friendly solid carbon during the turquoise hydrogen generation process, which can be processed into carbon black, the main component of tires, coke for steelmaking, and artificial graphite for electric vehicle batteries.

SK Inc. participated as a leading investor in June and secured a seat on Monolith's board of directors. At that time, NextEra Energy, the largest power and renewable energy company in the U.S., also participated as a co-investor, which was evaluated as proof of Monolith's business performance and competitiveness.

In June last year, Monolith completed the world's first turquoise hydrogen mass production plant in Nebraska, USA, and possesses the only commercialized process technology globally. Monolith plans to continuously expand global turquoise hydrogen production facilities based in the U.S.

Through this MOU, SK Inc. aims to combine Monolith's unique technological competitiveness and business capabilities to secure business opportunities in the domestic market, where demand for eco-friendly industrial raw materials such as turquoise hydrogen and solid carbon is increasing. The two companies plan to sign a joint venture establishment contract as early as the beginning of next year.

Along with discussions on establishing a domestic joint venture, the two companies will conduct research to utilize Monolith's eco-friendly solid carbon as artificial graphite anode material for secondary batteries. Anode material plays the most important role in battery life and currently uses artificial graphite and natural graphite as main raw materials. According to SNE Research, the global graphite-based anode material market is expected to grow from 13 trillion won last year to 16 trillion won by 2026.

SK is executing a multifaceted hydrogen business development strategy, including diversifying hydrogen production methods, expanding demand development, and securing a global market lead. SK aims to establish a clean hydrogen production system of 280,000 tons by 2025. An SK Inc. official emphasized, "Based on cooperation with domestic and international partners and bold investments, we will secure competitiveness in producing various forms of hydrogen such as blue hydrogen and turquoise hydrogen, and grow into the world's number one hydrogen company by integrating the hydrogen value chain from production to distribution and supply."

☞ Solid Carbon

A solid carbon mass that is a byproduct of turquoise hydrogen production. It is processed and sold as carbon black, the main component of tires.

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