SK Inc. (“SK”) and KKR, a leading global investment firm, have signed final agreements to create Korea’s largest renewable energy company, with a value of about KRW 2 trillion, or roughly $1.3 billion. Through this new company, called the “Platform,” SK and KKR will combine renewable energy assets that were previously held by different SK companies into one single business. These assets cover solar power, wind power on land and at sea, and fuel cells, and the new setup will allow both companies to use their experience in running projects and investing in clean energy.
This launch is the latest project between KKR and SK, and it builds on a long relationship that already includes several other collaborations. The new company will help Korea meet the fast-growing demand for clean electricity from AI data centers, semiconductor factories, and other large industrial users. In the beginning, KKR will have management control of the company, while SK will be an equity investor and will keep the option to discuss taking control in the future.
The Platform will bring together renewable energy businesses from SK Innovation, SK ecoplant, and SK eternix, so it will cover the full process from project development and construction to operation and maintenance. By combining all of these parts, the company can operate on a larger scale and run more efficiently. The Platform will manage all types of renewable energy except hydrogen, including solar power, offshore wind, onshore wind, and fuel cells.
With this scale, the Platform will be Korea’s biggest renewable energy business. It currently has about 1.7 gigawatts of capacity in operation, and its development plans will increase that to 10 gigawatts in total. That amount of power is enough to run 100 large data centers that each use 100 megawatts, nonstop and at the same time. At this size, the Platform is in a strong position to provide steady, large-scale clean power to Korea’s most demanding industrial customers, from AI data centers to global semiconductor production lines and other heavy users.
Keith Kim, a Partner at KKR, said they are pleased to work with SK, which is a strong local partner with deep operational experience in Korea. He added that Korea is one of Asia’s most attractive markets for renewable energy because there is strong demand for clean power from the semiconductor, data center, and manufacturing sectors. Together, KKR and SK are building a leading, large-scale renewable energy company that can supply reliable clean power to Korea’s most energy-intensive industries.
SK is combining these renewable energy businesses as part of a planned effort to reshape its portfolio and make it more sustainable and competitive. By bringing together the financial strength of a global fund with SK’s ability to execute projects, SK aims to respond to the rising demand for clean energy and create a business model that can grow over the long term.
KKR is funding this investment mainly through its Asia Pacific infrastructure strategy. KKR is one of the most active infrastructure investors in the world, with more than $100 billion in infrastructure assets under management and over $31 billion invested in energy transition and renewable infrastructure since 2011. In Asia Pacific, KKR has already supported the region’s clean energy shift through companies such as Serentica Renewables in India, which supplies power to large industrial users, CleanPeak Energy in Australia, which runs a distributed energy business, and Zenith Energy in Australia, which provides off-grid energy solutions.
SK plans to use the launch of the Platform to strengthen its renewable energy business and support its future growth. At the same time, SK will continue to adjust its portfolio to improve capital efficiency and make its overall business more competitive.
KKR is a leading global investment firm that provides alternative asset management, as well as capital markets and insurance solutions.
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