Aims to Increase NAV of Green Business by 14 Times by 2030
SK Inc., the holding company of SK Group, plans to increase the net asset value (NAV) of the group's green business by 14 times within eight years. The company intends to use the group's efforts to overcome climate change as an opportunity to expand its future business.
SK Inc.'s Green Investment Center announced in an investor meeting at the end of November that it would raise the net asset value (NAV) of SK Group's green business from US$4.8 billion at the moment to US$29 billion in 2025 and US$66.7 billion in 2030 through investment in three key areas.
The three key areas are energy transition, industrial transition and carbon management.
Last year, SK Inc. announced that it would be reborn as an investment company with the focus put on four businesses -- advanced materials, green, biotech and digital. The company's green business unit invests in hydrogen, eco-friendly energy, alternative food and recycling.
Regarding the decarbonization strategy, SK Group's goal is to reduce 200 million tons of carbon by 2030, which is about 1 percent of the global carbon reduction target for 2030.
NAV is the amount of a company’s assets minus its liabilities. It refers to the amount that remains after the company's entire assets are sold in the current market price and its debts are paid off.
SK disclosed the NAV targets for each of the three areas. It is planning to raise the NAV in the energy transition domain from the current US$3.3 billion to US$36.2 billion by 2030, the NAV in the industrial transition domain from the current US$1.3 billion to US$18.2 billion, and the NAV in the carbon management domain from the current US$200 million to US$12.4 billion.
SK’s energy transition strategy is to secure key technologies such as hydrogen, ammonia, and biofuels, to replace existing fossil fuels, while producing renewable energy and carbon-free electric power.
“We will enter the carbon-free power generation business by participating in small modular reactor (SMR) projects in Korea and the U.S.,” an SK official said. “SK will develop the blue-green hydrogen business and the eco-friendly solid carbon business by establishing a domestic joint venture with Monolith, a U.S. hydrogen company.”
SK’s detailed promotion strategy for the industrial transition focuses on circulating resources such as structural transformation of agricultural and livestock industries including alternative foods, securing technology to reduce carbon emissions in cement and steel production processes and eco-friendly treatment of waste.
In particular, SK is actively building an alternative food business portfolio. It has invested successively in Meat-less Farm, a British alternative meat producer, Perfect Day, a leading U.S. fermented protein company, and Wildtype Foods, a U.S. cell-cultured salmon meat company.