SK and KKR announced definitive agreements to launch Korea’s largest renewable energy platform. The platform is valued at KRW 2 trillion, or approximately $1.3 billion.
The new platform will bring together renewable energy assets previously held by SK affiliates across solar, onshore and offshore wind, and fuel cells.
The platform is designed to help Korea meet rising clean-power demand from AI data centers, semiconductor production lines, and other large industrial users.
KKR will have management control of the platform in its initial phase.
SK will participate as an equity investor and retain flexibility to pursue control rights through future discussions.
The platform will combine renewable energy businesses and assets from SK Innovation, SK ecoplant, and SK eternix.
By integrating the value chain from development and construction through operations and maintenance, the platform is expected to improve economies of scale and operational efficiency.
The platform will manage a portfolio covering renewable energy generation areas except hydrogen, including solar, offshore wind, onshore wind, and fuel cells.
The platform has approximately 1.7 gigawatts of capacity currently in operation.
Its development pipeline is expected to bring total capacity to 10 gigawatts.
At that scale, the platform could continuously power 100 large-scale 100-megawatt-class data centers.
SK said the platform launch is part of a portfolio rebalancing effort intended to strengthen sustainability and competitiveness.
The company also said the platform combines KKR’s capital strength with SK’s execution capabilities to respond to growing clean energy demand.
KKR is making the investment primarily from its Asia Pacific infrastructure strategy.
KKR has more than $100 billion in infrastructure assets under management and has invested more than $31 billion into energy transition and renewables infrastructure since 2011.
Across Asia Pacific, KKR has invested in energy transition platforms including Serentica Renewables in India, CleanPeak Energy in Australia, and Zenith Energy in Australia.
SK plans to use the platform launch to strengthen the foundation of its renewable energy business and continue restructuring its portfolio to improve capital efficiency and competitiveness.
SK Inc. is the holding company of SK Group, which has approximately 150 subsidiaries, including SK Hynix, SK Innovation, SK Telecom, SK Square, SKC, SK Ecoplant, and SK Networks.
KEY QUOTES:
“We are delighted to work alongside SK, a strategic partner with deep local operational capability. Korea is one of Asia’s most attractive renewable energy markets, underpinned by strong corporate demand for clean power from the semiconductor, data center, and manufacturing sectors. Together, we are establishing a leading, scaled renewable energy platform that can supply reliable clean power to Korea’s most demanding industrial users.”
Keith Kim, Partner at KKR
