SK Innovation, ENEOS to co-work for low-carbon energy

SK Innovation Co. said on Wednesday it will bolster its alliance with Japan's largest petroleum refiner ENEOS.

This decision builds on their historic collaboration spanning multiple sectors, including refining, chemicals, and lubricating oil.

This new direction will encompass technological exchanges and the advancement of pertinent projects, signaling a transformative phase in the energy sector.

Two companies held an executive management meeting in Seogwipo City, Jeju Island, on Oct. 31. This annual event had been on hiatus since 2020 due to the challenges posed by COVID-19 but made a comeback this year.

The main theme of the meeting this year was realizing a stable energy supply and carbon reduction through Sustainable Aviation Fuel (SAF) and Carbon Capture Utilization and Storage (CCUS).

SK Innovation and ENEOS signed a memorandum of understanding for a range of collaborative efforts: co-developing low-carbon energy sources, fortifying the petroleum sector's competitive edge through mutual support in product supply, and promoting circular economy and carbon reduction in the chemicals and lubricants business. 

A standout strategy in the petroleum sector is the proposed establishment of a cohesive cooperation framework. This system aims to integrate the operations of the SK Ulsan Complex with ENEOS sophisticated refining facilities in Japan, ensuring agility in responding to market flux.

Furthermore, the chemical and lubricant business segment is primed for expansion. The vision is to widen cooperative horizons into novel ventures. This initiative is inspired by the triumphant synergy already observed in the joint ventures of Ulsan Aromatics and Yubase Manufacturing Asia.

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