SK, the holding company of South Korean conglomerate SK Group, signed a preliminary agreement this week with US hydrogen producer Monolith Materials to set up a joint venture to produce green hydrogen and products based on solid carbon in South Korea.
The agreement follows SK’s decision last June to acquire an unspecified stake in Nebraska-based Monolith as it looks to expand its portfolio of eco-friendly and sustainable energy businesses.
According to the memorandum of understanding, Monolith has agreed to provide the technology and training for the operation while SK Group will oversee production, sales and distribution.
A formal agreement is expected to be signed early next year.
Monolith is reportedly the first company in the US to produce hydrogen by converting natural gas into hydrogen and also produce solid carbon as a by-product of this process.
Solid carbon, or carbon black, is a key ingredient of automotive tyres and industrial rubber products and is also used in electric vehicle batteries.
SK said it plans to launch a separate joint research and development company with Monolith’s to commercialise solid carbon.