SK innovation absorbs SK Group energy team

SK Innovation Ulsan Complex. (SK Innovation)

South Korea’s SK innovation recently unveiled a new division, the Energy Solutions Business Unit, which consolidates new energy projects within the SK Group. The unit, which comes under the direct oversight of SK innovation CEO Park Sang-kyu, includes around 30 professionals previously engaged in energy development efforts across SK Inc., SK E&S, SK energy, SK geocentric, and other SK affiliates.

Led by Kim Moo-hwan, former head of SK Inc.’s Green Division, the Energy Solutions Business Unit will focus on developing small modular reactors (SMRs), fuel cells, and energy storage systems (ESS). The division’s main objectives include advancing distributed power generation, supporting the energy transition, and enhancing efficiency as the energy market continues to evolve. SK innovation intends to meet the anticipated demand for enhanced energy supply, driven by the growing adoption of artificial intelligence (AI) and the expansion of data centers.

As AI applications with heavy computational needs become more widespread, the demand for stable and uninterrupted power at data centers has surged. SK innovation sees this as a critical area for its energy solutions, with plans to ensure consistent energy delivery for these 24-hour operations.

Following its recent merger with SK E&S, SK innovation has grown into Asia-Pacific’s largest private energy provider, with total assets reaching 105 trillion won ($76.35 billion) as of the end of June 2024. This strengthened position allows SK innovation to cover a comprehensive range of energy sources, including oil, liquefied natural gas (LNG), and electricity, enabling timely execution of its energy solutions strategy.

In parallel with the formation of the Energy Solutions Business Unit, SK innovation has also established an Energy Solutions Development Task Force within its Institute of Environmental Science and Technology. Directed by Lee Sung-jun, head of the institute, this task force, consisting of about 20 researchers, will explore new technologies and seek practical commercial applications for innovations in the energy solutions sector.