SK Group to step up renewable energy push in Vietnam

SK Group will strengthen its partnership with the Vietnamese government to boost eco-friendly business in areas ranging from carbon capture to waste recycling and solar and wind farms, said group Chairman Chey Tae-won.

The second-largest conglomerate in South Korea has pioneered Vietnam’s fast-growing renewable energy market, operating solar farms and onshore wind plants in their commitment to net zero emissions by 2050.

“We will support Vietnam's clean energy transition and collaborate in achieving carbon neutrality by utilizing cutting-edge technologies such as carbon capture, utilization and storage (CCUS), small nuclear reactors and energy solutions,” Chey said in a meeting with Vietnamese Prime Minister Pham Minh Chinh on Oct. 28,

“Our goal is to build an eco-friendly ecosystem throughout the entire process from production to consumption in partnerships with local governments.”

CCUS is a technical process of capturing carbon dioxide from emissions for industrial production, converting it into value-added products, or sequestering and storing it permanently or semi-permanently.

Vietnam has been the gateway for SK Group’s expansion in Southeast Asia for almost three decades since Chey’s father and late former Chairman Chey Jong-hyun started an oil development project there in the 1990s.

The country is an optimal location for solar and wind power generation thanks to its ample sunlight and winds blowing from the long north to the south coast throughout the year.

It aims to expand the proportion of solar and wind power of total power supply to 61% (254GW) by 2045, compared with 27% (21GW) in 2021. 

SK E&C

SK E&S, an LNG power generator, is leading the parent group’s clean energy projects in Vietnam.

It has been operating a solar farm with a power generation capacity of 131 megawatts (MW) in Ninh Thuan, southern Vietnam, since 2020.

It is also generating power for commercial use in Tien Giang, western Vietnam. Its capacity has jumped by five-fold to 100MW in 2023, versus 50MW in 2021.

Early this year, SK E&C set up a joint venture, Solwind Energy, with Gia Lai Electricity, a subsidiary of Vietnam’s leading renewable energy group TTC. The JV is working on a solar energy project in Tay Ninh, southeast of Vietnam, to build rooftop panels.
 
Near the border with Laos, the JV is also building a 756MW onshore wind power plant.

SKC Ltd., a chemical products manufacturer, is constructing a biodegradable material production facility there.

SK Ecoplant Co., a construction engineering company, is exploring business opportunities in Vietnam in areas of waste disposal and waste battery recycling projects in a partnership with local companies.

In the meeting with Vietnam's prime minister, Chey was accompanied by Cho Dae-sik, chairman of SK Supex Council, the group’s top decision-making body; Choo Hyeongwook, chief executive of SK E&S; Park Kyung-il, CEO of SK Ecoplant; Park Woncheol, CEO Of SKC. 

Write to Hyung-Kyu Kim at khk@hankyung.com

Yeonhee Kim edited this article.