SK E&S's hydrogen subsidiary raises 360 billion won for liquid hydrogen plant

SK E&S's hydrogen subsidiary raised 360 billion won ($280.6 million) from state-run banks for a liquid hydrogen plant project, the parent company said Friday.

SK E&S's hydrogen subsidiary raised 360 billion won ($280.6 million) from state-run banks for a liquid hydrogen plant project, the parent company said Friday.

Founded in March last year, IGE is an Incheon-based hydrogen subsidiary of SK E&S, a natural gas supplier 90 percent owned by SK Inc.

IGE pooled some 360 billion won in a project financing arrangement from the Korea Development Bank (KDB), the Export-Import Bank of Korea and the Industrial Bank of Korea, according to SK E&S. The state-owned KDB, in particular, has been expanding green financing for budding renewable businesses in the country.

The funding will be spent on building a liquid hydrogen plant with an annual production capacity of 30,000 tons in Incheon. The hydrogen plant will begin commercial operation in the latter half of 2023.

“Through the latest project financing arrangement, we will be able to secure a stable funding,” said an SK E&S spokesperson.

SK E&S has been scaling up its hydrogen business to expand its business portfolio from the traditional natural gas business. In July this year, the company invested $25 million in Lincoln, Nebraska-based Monolith Materials.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]