SK Group to invest $12 bn in green industries by 2025

South Korea’s third-largest conglomerate SK Group will invest 14 trillion won ($11.8 billion) over the next five years in green industries to diversify its environmentally-friendly portfolio amid growing awareness about the global climate crisis.

According to plans announced by SK Group’s investment arm SK Inc. on Thursday, SK and its affiliates will spend 14 trillion won in green industries by 2025 – 9.5 trillion won in alternative energy, 310 billion won in sustainable foods, 4 trillion won in clean solutions, and 600 trillion won in carbon dioxide reprocessing.

While the group’s earlier investment plan of 18.5 trillion won in hydrogen sector includes funds from both the group and external partner investors, the latest green investment is the group’s independent investment scheme.

Kim Moo-hwan, executive vice president of Green Investment Center at SK, said that the group has invested 2.7 trillion won this year alone in green industries and is rapidly diversifying its eco-friendly business investment portfolio. SK aims to expand its green investment fund to 35 trillion won by 2025, he added.

Of all sectors, SK has keen interest in alternative energy sources that include hydrogen and fuel cells, energy solution and renewable energy. According to industry sources, the global alternative energy market is forecast to nearly double from 3,200 trillion won in 2021 to 6,300 trillion won in 2025.

SK will also expand investment in sustainable foods that include replacement proteins, animal cell extraction cultured meat, and microorganism fermentation protein.

Waste disposal solutions are another core green business in which the company is seeking to invest trillions of won to make a foray into the global market. It will also secure reprocessing new technology such as that involving carbon dioxide capture, storage, and transfer.

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