SK E&S Launches Blue-Green Hydrogen Project... Invests in US Hydrogen Company 'Monolith'

Complete Portfolio for Hydrogen Production
Synergies Expected at SK Group Level

[Asia Economy Reporter Jeong Dong-hoon] SK E&S has decided to invest in the US turquoise hydrogen company Monolith Materials (Monolith) and expand its eco-friendly hydrogen business.

On the 18th, SK E&S announced that it will invest about 33 billion KRW (approximately 25 million USD) in Monolith, which succeeded in commercializing turquoise hydrogen for the first time in the world.

Monolith, headquartered in the state of Nebraska, USA, is a leading company in the field of turquoise hydrogen. It not only possesses the core pyrolysis technology essential for turquoise hydrogen production but also has the only commercialized process technology in the world.

Since SK Inc. invested last year, Monolith has signed a loan agreement for growth funds worth 1 billion USD (about 1.326 trillion KRW) from the US Department of Energy (DOE). It is actively expanding its business by signing carbon black sales agreements with tire companies including Goodyear.

With this investment, SK E&S plans to build a complete portfolio of hydrogen production including blue, green, and turquoise hydrogen as a key member company promoting hydrogen business within SK Group, and to create group-level synergy in advancing the turquoise hydrogen business in the future.

The turquoise hydrogen produced by Monolith is generated by pyrolyzing natural gas (CH4) to produce hydrogen (H2) and solid carbon (C), and since no carbon dioxide is emitted during this process, turquoise hydrogen is classified as eco-friendly hydrogen along with blue and green hydrogen.

The solid carbon produced together in the turquoise hydrogen production process is used as carbon black, the main component of tires, and coke for steelmaking. Carbon black demand has recently increased, especially in the tire industry, which needs carbon reduction. Coke can be used as a reducing agent and fuel in the ironmaking process at steel mills, so the solid carbon market is expected to expand.

SK E&S plans to seek business opportunities in the domestic market by combining Monolith’s turquoise hydrogen technology competitiveness with SK E&S’s hydrogen business capabilities through this investment. To this end, SK E&S is also conducting detailed discussions with Monolith on cooperation for Asian business.

Meanwhile, SK E&S is promoting the establishment of a blue hydrogen business ecosystem. Through the world’s largest hydrogen liquefaction plant currently under construction in Incheon, it plans to produce 30,000 tons of liquefied hydrogen annually from the end of next year and supply it nationwide. In addition, through the blue hydrogen plant being built near the Boryeong LNG terminal, it plans to produce 250,000 tons of hydrogen annually starting in 2025.

Kwon Hyung-gyun, head of the Hydrogen Business Development Group at SK E&S, said, "Turquoise hydrogen has the advantage of not generating carbon dioxide during production," and added, "We will focus on optimizing the hydrogen business portfolio by applying the capabilities of blue and green hydrogen businesses to turquoise hydrogen as well."

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