MOSCOW (MRC) -- South Korean industrial holding SK Inc has led an investment round to help US-based green hydrogen company Monolith Materials expand its operations, said Chemengonline.
The investment will support expansion of Monolith’s green hydrogen production facility in Nebraska and further SK’s strategy to make carbon-neutral energy accessible to global markets as part of a commitment to Environmental, Social and Corporate Governance (ESG) management practices.
In addition to the investment, SK Inc. will collaborate with Monolith Materials on future expansion into global markets. Monolith Materials is the first U.S. manufacturer to produce an industry-transforming hydrogen known as “green hydrogen” on a commercial scale using its proprietary methane pyrolysis process. Through this process, Monolith manufactures clean, economically sustainable hydrogen using 100% renewable energy. Monolith’s hydrogen is classified as green hydrogen, which is the cleanest hydrogen available today. Monolith also counts Mitsubishi Heavy Industries as a major investor.
“Monolith Materials’ proprietary green hydrogen production process supports SK’s initiative to lead the global transition to a hydrogen economy and make meaningful progress toward a more sustainable energy system,” said Moo-hwan Kim, executive vice president of SK Inc. “SK recognizes the critical role hydrogen plays in alternative energy sources, and we are encouraged by Monolith’s technology that advances clean hydrogen production."
SK Inc. led a consortium of investors that also included NextEra Energy Resources, LLC, a leading clean energy company headquartered in Juno Beach, Fla., and Perry Creek Capital. This round also included additional investment from current Monolith funders Azimuth Capital Management, Cornell Capital and Warburg Pincus.
Monolith Materials, which was founded in 2012, developed a process technology that uses renewable energy to convert natural gas into clean hydrogen and a solid carbon material called carbon black, a critical raw material in the automotive and industrial sectors. The company is currently in the operating stage of its first commercial-scale production facility in Hallam, Nebraska. Along with producing green hydrogen, the company recently announced its plans to produce clean ammonia at a second phase production facility nearby.
When its expansion is complete, expected to occur in 2024, Monolith Materials’ production of green hydrogen, clean ammonia and carbon black is expected to reduce greenhouse gas emissions by as much as 1 million metric tons per year compared to traditional manufacturing processes.
For SK, hydrogen has become a key part of its overall green energy growth strategy. SK Inc. is pursuing various strategies to foster hydrogen businesses, such as diversifying hydrogen production methods, expanding demand development and forming global partnerships. SK Inc. aims to secure clean hydrogen leadership and accelerate the global hydrogen ecosystem.
The Monolith investment also reinforces SK’s commitment to expanding its U.S. businesses. In 2019, SK Group Chairman Tae-won Chey committed to investing USD10 billion to create new jobs and opportunities for communities across the U.S. SK companies have more than 2,000 employees at sites in 10 states with plans that could more than triple its U.S. employee base in the next three years.
As per MRC, South Korean SK Global Chemical (SKGC) plans to start scheduled preventive measures at the end of May on line No. 1 for the production of paraxylene in Ulsan (Ulsan, South Korea). It is estimated that maintenance on this 450 ktpa paraxylene line will continue for approximately 45 days. The company also operates another line at its Ulsan facility with a capacity of 400,000 tonnes of paraxylene per year.
Paraxylene is used as a raw material for the synthesis of terephthalic acid, an intermediate product for the production of polyethylene terephthalate (PET).
According to MRC's ScanPlast, in March of this year, the total estimated consumption of PET in Russia amounted to 64,750 tonnes, which corresponds to the previous year (64,520 tonnes in 2020). Estimated PET consumption in the country increased in January - March 2021 compared to the same period last year by 5% and amounted to 182,300 tonnes.
SK Global Chemical is a division of SK Group, Korea's first refinery in operation for over 50 years. SK Group has more than 70 thousand employees working in 113 offices around the world. Its largest enterprises produce mainly petrochemical products.
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