Investment firm KKR & Co Inc said on Friday it had bought 2.4 trillion won ($2 billion) worth of newly issued redeemable convertible preferred shares of South Korean energy company SK E&S Co Ltd.
SK Group conglomerate member SK E&S will use the funding to accelerate its growth, KKR said adding the investment was made from its Asia Pacific infrastructure fund.
In September, SK E&S announced its plan to become No.1 in the global hydrogen industry by building on its existing liquefied natural gas (LNG) capabilities.
It has a target to raise its annual hydrogen supply capacity to 280,000 tonnes by 2025, including 30,000 tonnes of liquefied hydrogen and 250,000 tonnes of “blue” hydrogen, where carbon dioxide is captured and stored during hydrogen production.
SK E&S, South Korea’s largest private renewable energy operator, which is developing and operating 2.5 gigawatts (GW), is also planning to become a major global player in the sector with 7 GW of renewable energy by 2025. It is pursuing projects in overseas markets such as Vietnam and India, SK E&S said in a statement.
Holding company SK Inc owns 90% of SK E&S as of the end of June.
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Companies and governments have touted green hydrogen, derived from water using electrolyzers powered by renewable energy, as a way to cut carbon emissions. But it now costs about four times more to make green hydrogen than it does to make “grey hydrogen” using electrolyzers powered by natural gas or other fossil fuels.