SK Inc. invests 60 billion KRW in US bioenergy company 'Pulkrum'

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Fulcrum Commercializes US First Synthetic Crude Oil Production Process Based on Municipal Solid Waste

[Asia Economy Reporter Hwang Yoon-joo] Investment specialist SK Inc. is entering the domestic bioenergy market by investing in Fulcrum BioEnergy, a U.S. bioenergy company that produces synthetic crude oil using municipal solid waste.

On the 16th, SK Inc. announced that it will jointly invest $50 million (approximately 60 billion KRW) with a domestic private equity fund in Fulcrum. Fulcrum is the first company to commercialize a process that produces high-purity synthetic crude oil from municipal solid waste in the United States, the world's largest bioenergy market.

Founded in 2007 in Pleasanton, California, Fulcrum implements an optimal process that selects combustible organics contained in municipal solid waste and re-synthesizes them into high-purity synthetic crude oil and aviation fuel for transportation, holding exclusive patents for the entire process.

Fulcrum plans to produce about 40,000 tons of synthetic crude oil annually starting in 2022 through the world's first municipal solid waste-based synthetic crude oil production plant completed in Nevada in July this year, and will additionally produce bio aviation fuel in the future. Fulcrum currently receives municipal solid waste through long-term contracts with major waste companies in the U.S., and the synthetic crude oil and aviation fuel to be produced have already secured purchase contracts with energy companies and airlines, ensuring stable growth.

In addition to recycled waste, Fulcrum utilizes municipal solid waste that is otherwise processed by landfill as an energy source, directly contributing to reducing landfill volumes and greenhouse gas emissions. As the amount of municipal solid waste landfilled significantly decreases, it prevents the emission of methane, a representative greenhouse gas generated during the decomposition process after landfilling.

According to the International Energy Agency (IEA) and others, global biofuel production was estimated at about 144 billion liters in 2020, with a market size estimated at approximately $135 billion (about 160 trillion KRW). The United States is the world's largest bioenergy market, producing about 45% of global production. Despite the spread of electric vehicles, biofuels are expected to maintain steady growth centered on demand for existing internal combustion engine vehicles and aviation fuel for the time being.

Kim Moo-hwan, head of SK Inc.'s Green Investment Center, said, "Fulcrum's biofuels can significantly reduce greenhouse gas emissions and solve the shortage of municipal solid waste landfill sites." He added, "By utilizing Fulcrum's innovative process, we will explore the possibility of domestic waste biofuel projects with SK Ecoplant and simultaneously expand our entry into the global waste resource and bioenergy markets."

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