SK E&S in talks to sell ESS, solar energy projects

SK E&S Co. is in talks with a number of private equity firms and financial investors to sell energy storage systems (ESS) and solar energy development projects worth 100 billion-200 billion won ($85 million-$171 million), according to investment banking sources on Friday.

The assets up for sale belong to the South Korean natural gas company's energy solutions business, which makes early-stage investments in ESS and solar energy power plants as a developer and sells them at a later stage for a profit.

Neither the assets, nor the potential buyers were identified. The ESS facilities have a capacity of 339 megawatts, the sources said.   

The SK Group unit aims to turn into an eco-friendly company, fostering energy solutions, hydrogen, renewable energy and eco-friendly liquefied natural gas (LNG) as future growth engines.

Last month, it acquired Key Capture Energy LLC (KCE), a US operator of energy storage projects. Headquartered in Albany, New York, KCE develops, constructs and operates energy storage solutions to promote the deployment of renewable energy. 

Separately, SK E&S has been in exclusive negotiations with KKR & Co. to sell new preferred shares worth 2.4 trillion won ($2 billion).

The country's top city gas supplier plans to spend the proceeds in expanding its hydrogen business and shoring up the capital base, following a series of acquisitions, including a stake in US hydrogen fuel cell maker Plug Power Inc.

Write to Jun-ho Cha at chacha@hankyung.com
Yeonhee Kim edited this article.