SK Innovation invests $20 million in California-based biofuel company Fulcrum BioEnergy

Industry

Published: 13 Jul. 2022, 16:22

SK Innovation invests $20 million in California-based biofuel company Fulcrum BioEnergy

A graphic detailing the waste gasification process of Fulcrum BioEnergy [SK INNOVATION]

SK Innovation is investing $20 million in Fulcrum BioEnergy, a biofuel company based in Pleasanton, California, the Korean oil refiner said Wednesday.

With the investment, SK Innovation acquired Fulcrum’s newly-issued shares, though the company did not disclose the amount of its stake.

The goal of the investment is to secure next-generation biofuel technologies and diversify its eco-friendly business portfolio, according to SK Innovation. The company is also considering entering the Asian biofuel market with Fulcrum BioEnergy.

Last year, SK Inc. also took part in a joint investment worth $50 million in Fulcrum with a local private equity fund.

Founded in 2007, Fulcrum BioEnergy transforms household garbage into low-carbon biofuel through a gasification process. Using flammable waste as a feedstock, Fulcrum produces synthetic gas that can be processed into synthetic crude oil. The company plans to produce aviation fuel in the future as well.

The company built the world’s first synthetic oil production plant in Nevada with an annual production capacity of 40,000 tons last July. The plant began operation in May.

About 2.1 billion tons of solid waste were generated globally in 2020, and the figure is estimated to reach 2.3 billion by 2030, according to International Solid Waste Association.

SK affiliates are ramping up efforts to make their business portfolios more eco-friendly amid the global shift toward sustainable energy. The goal is to reach net-zero carbon emissions by 2050.

SK Innovation invested $30 million in Amogy, a Brooklyn, New York-based start-up, to co-develop hydrogen fuel cells using ammonia as a green energy source.

SK Innovation and SK Inc. signed a memorandum of understanding with TerraPower, a U.S. nuclear power start-up co-founded by Bill Gates in May.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]