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
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
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.