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SK, KKR Launch $1.3B Green Energy Powerhouse
1 Jul
Summary
- KKR and SK Inc. will launch South Korea's largest renewable energy platform.
- The new platform is valued at 2 trillion won ($1.3 billion).
- It will combine solar, wind, and fuel cell assets to meet clean-power demand.
KKR and South Korea's SK Inc. have announced the creation of the country's largest renewable energy platform. This significant venture, valued at 2 trillion won ($1.3 billion), is poised to address the increasing demand for clean power, particularly from burgeoning AI data centers and chip manufacturing facilities.
The new platform will consolidate renewable energy assets from SK Innovation, SK ecoplant, and SK eternix. Its portfolio will encompass a diverse range of energy sources, including solar, onshore and offshore wind power, and fuel cells, marking a comprehensive approach to clean energy generation.
At its inception, the platform will boast approximately 1.7 gigawatts of operational capacity. Furthermore, a substantial development pipeline is expected to expand the total capacity to 10 gigawatts. This future capacity is substantial enough to power an estimated 100 large-scale data centers, each rated at 100 megawatts.
KKR is set to hold initial management control of this expansive platform. SK Inc. will be an equity investor, with potential future discussions about securing control rights. The partnership structure involves KKR owning 51% and SK Inc. holding 49%. The integrated entity is anticipated to be fully operational by the end of the year.
