Korean clean energy company SK Inc. Materials is expanding investment into U.S. clean tech company 8 Rivers, an innovator of Carbon, Capture, and Storage technology. The SK Inc board approved the decision on 6 March to earmark a $300 million fund to invest in the U.S. company.
With this investment, SK Inc. Materials aims to actively develop its CCUS-based business in the U.S. and strengthen its partnership with 8 Rivers.
“Although carbon reduction has become a global agenda, it is difficult to replace base-load power generation with renewable energy alone, and carbon dioxide capturing is still expensive. 8 Rivers, with its innovative technology, will contribute to the acceleration of carbon reduction by significantly improving cost competitiveness,” SK Inc. materials said.
The Korean firm plans to promote its clean energy services in the North American market as it offers a conducive environment and infrastructure for CCUS businesses, particularly after the passage of the Inflation Reduction Act last August.
Once the technology is commercialised, SK plans to expand globally. Clean energy projects will be launched targeting Asian countries that are highly dependent on fossil fuels and have abundant CO2 storage spaces, such as Malaysia and Indonesia. In Korea, the 8 Rivers technology will be introduced in the mid to long term as a low-cost, high-efficiency CCUS Total Solution Provider.
8 Rivers was established in 2008 in North Carolina. The company owns patented technology for producing clean electricity and blue hydrogen, which captures more than 99 per cent of carbon dioxide in an innovative and low-cost way.
In February 2023, SK Holdings Materials signed an agreement with ExxonMobil to introduce blue ammonia to SK Materials in Korea with the aim of enhancing its clean energy business.