SK Partner Receives DOE Loan to Support Growth of U.S.-Based Hydrogen Infrastructure
The global business landscape is rapidly shifting towards a more sustainable, carbon-neutral economy. As part of our mission to uphold Environmental, Social and Governance (ESG) principles, SK Group companies are refocusing investments and operations to reduce and eventually eliminate our net carbon emissions. Hydrogen is an energy source that SK companies and our partners are developing to help achieve our environmental goals.
Today, Monolith, a U.S. company in which SK Inc. is a strategic investor, reached a new milestone for hydrogen energy. Monolith announced it has received conditional approval for a $1.04 billion loan from the U.S. Department of Energy (DOE) to support the expansion of its clean hydrogen and carbon black production facilities in Nebraska. This first loan from the DOE Loan Programs Office in five years validates Monolith’s pyrolysis technology for the commercial market.
The DOE loan is exciting news for SK’s commitment to developing alternative energy sources. In 2019, 80% of both U.S. energy production and consumption came from fossil fuels, including coal, natural gas and petroleum, according to the U.S. Energy Information Administration.
This new loan from the U.S. DOE is significant because it supports the growth of clean hydrogen production and cleanly made carbon black production. Monolith expects that the expansion of its Olive Creek facility in Nebraska will prevent one million tons of greenhouse gas emissions from entering the atmosphere each year compared to traditional manufacturing processes.
For SK, the news continues positive momentum for our broader, global hydrogen strategy. In late 2020, SK Inc., the holding company of SK Group, launched a Hydrogen Business Center consisting of energy experts from SK E&S and SK Innovation to create a complete hydrogen value-chain from production to consumption. This group has led many of our recent investments and partnerships aimed at building the hydrogen economy.
In addition to Monolith, SK companies are making investments and building partnerships in the U.S. and globally to advance hydrogen energy. They’re also working to bring the technology to market by building a hydrogen ecosystem in Korea.
As we look towards the new year, SK remains committed to continuing to invest and build businesses towards a carbon-neutral, more environmentally friendly global economy. Our work within the U.S. has spurred innovation across a range of industries, including EV batteries, energy storage, new food alternatives and recycled materials. We look forward to even more positive momentum in 2022 to make new, clean energy sources a reality for global markets.
