Investment firm KKR & Co Inc said on Friday it had purchased 2.4 trillion won ($ 2 billion) of newly issued redeemable convertible preferred shares of South Korean energy firm SK E&S Co Ltd.
SK E&S, a member of the SK group conglomerate, will use the financing to accelerate its growth, KKR said, adding that the investment was made from its Asia-Pacific infrastructure fund.
In September, SK E&S announced its intention to become the No. 1 in the global hydrogen industry by building on its existing liquefied natural gas (LNG) capacities.
Its objective is to increase its annual hydrogen supply capacity to 280,000 tonnes by 2025, including 30,000 tonnes of liquefied hydrogen and 250,000 tonnes of “blue” hydrogen, where carbon dioxide is captured and stored. during the production of hydrogen.
SK E&S, South Korea’s largest private renewable energy operator, which develops and operates 2.5 gigawatts (GW), also plans to become a major global player in the sector with 7 GW of renewable energy by 2025 He pursues projects in foreign markets. like Vietnam and India, SK E&S said in a statement.
The holding company SK Inc owns 90% of SK E&S at the end of June.
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Businesses and governments have touted green hydrogen, derived from water using electrolyzers powered by renewable energy, as a way to reduce carbon emissions. But today it costs about four times as much to produce green hydrogen as it does to produce “gray hydrogen” using electrolysers powered by natural gas or other fossil fuels.
