Seoul: SK Inc., the holding company of SK Group, announced it has signed an agreement with U.S. investment firm Kohlberg Kravis Roberts (KKR) to form a joint venture focused on renewable energy. This strategic move is part of SK's efforts to rebalance its business in response to the growing global demand for energy.
According to Yonhap News Agency, SK Group's three affiliates involved in energy-SK Innovation Co., SK ecoplant Co., and SK Discovery Co.-are in the process of transferring their renewable energy assets to KKR. This transfer, involving business and share exchanges, will facilitate the creation of the new joint venture. The joint venture, named HoldCo, will be a 49:51 partnership between SK Inc. and KKR, with its launch planned by the end of the year.
The joint venture aims to establish a comprehensive renewable energy portfolio, covering solar power, offshore and onshore wind power, fuel cells, and energy storage systems, excluding hydrogen. The initial operating capacity of the joint venture will be approximately 1.7 gigawatts (GW), with ambitious plans to expand this capacity to 10 GW by 2031.
SK Inc. expressed that the deal presents an opportunity to solidify its renewable energy business foundation while allowing for a strategic restructuring of its portfolio to boost capital efficiency and competitiveness in the market.