SK signs MOU with US hydrogen firm Monolith to set up joint venture in S. Korea

SK Inc., the holding company of South Korean conglomerate SK Group, said Wednesday it has signed an initial deal with a US hydrogen maker to set up a joint venture as part of efforts to bolster its clean energy business.

The memorandum of understanding (MOU), signed with Monolith Materials Inc., aims to create a joint venture to produce green hydrogen and carbon black products in South Korea, the company said in a release. Monolith will provide the technology and training, and SK will oversee the production, sales and distribution of those products.

Monolith, a Nebraska-based company, is the first American manufacturer to produce a unique type of green hydrogen by converting natural gas into hydrogen and a solid carbon byproduct, known as carbon black, a key component for tires and industrial rubber goods.

In June, SK said it signed a deal to acquire an unspecified stake in Monolith, as it has been bolstering its portfolio in eco-friendly and sustainable energy sources and expanding investment in the hydrogen business.

SK also said it plans to launch a joint research and development project to commercialize Monolith's solid carbon, a main material used in electric vehicle batteries.

The two companies plan to sign a formal agreement on establishing the joint venture around early next year, according to SK. (Yonhap)