SK Inc is joining hands with a U.S.-based hydrogen firm, Monolith, for a clean hydrogen production project. The duo will work together on the hydrogen economy in Korea. On Wednesday, a memorandum of understanding was signed between the two firms.
Monolith, a hydrogen-producing firm, owns technology that uses methane pyrolysis to produce turquoise hydrogen. It is considered to be similar to green technology as it produces carbon without emitting carbon dioxide. Such carbon is typically used in vehicle tires.
The joint venture contract is expected to be signed by mid-2022. With this, SK Inc will be involved in the production, sales, and distribution using the technology and training offered by Monolith.
In a press release released by the company, Jang Dong-Hyun, the CEO of SK inc, said spoke to the media. “Through close partnership with Monolith, SK will have Monolith’s clean hydrogen as one of the main pillars of SK’s hydrogen manufacturing portfolio,” Jang stated.
Since the manufacturing process adopted by Monolith creates carbon without releasing carbon dioxide, the company does not need additional carbon capture utilization and storage. The energy requirement is comparatively less as opposed to manufacturing green energy, according to Monolith.
Owing to the rising demand for clean hydrogen, the company plans to target the Korean market majorly. “It holds strategic value because it can act as an intermediate stage when transitioning from blue to green hydrogen,” the press release stated.
SK Inc views great potential in carbon black, which is generated while creating hydrogen at Monolith. The company looks at black carbon as the profit source in the future since it can be used in other applications. Therefore, SK Inc will soon be commercializing it by next year. Carbon black is majorly utilized as additives to strengthen the product’s optical, electrical and physical properties, and hence it is widely required in the manufacturing field.
SK Group has set a target of going net-zero emissions by 2050. For this, the company has been encouraging projects that reduce carbon emissions and push clean and renewable energy. According to industry experts, the new joint venture by SK Ic and Monolith will be a contributing project to achieve the target.
With the investment made by SK Inc, The company will join as the board of directors at Monolith. Although financial details have not been disclosed yet, the BoD position is highly suggestive.