SK Inc. invests in Fulcrum BioEnergy to accelerate RNG production

SK Inc., the investment arm of the SK Group in Seoul, South Korea, has invested $50 million in Fulcrum BioEnergy Inc., a waste-to-fuel company in Pleasanton, California. SK Inc. reports that a Korean private equity fund also has joined in the investment but did not state the name of that firm in its announcement.

According to a news release from SK Inc., the company plans to enhance its environmental, social and governance portfolio with its investment in Fulcrum.

Through this investment, SK Inc. says it aims to make inroads into the Korean bioenergy market with SK Ecoplant, another SK Group company, as a potential partner. SK Ecoplant is a global engineering and construction firm that has prioritized environmentally friendly energy and infrastructure projects. 

Starting in 2022, Fulcrum’s Nevada plant is set to begin producing about 11 million gallons of synthetic crude oil annually, which will be upgraded to transportation fuels, like sustainable aviation fuel. Fulcrum anticipates increased production, as the firm has secured a consistent supply of municipal solid waste (MSW) feedstock through long-term agreements with major waste services companies in the U.S. and has secured offtake agreements with major energy companies and airline companies.

Fulcrum says it has a patented process from feed engineering to biofuel production in the U.S. The company says its biofuel has been certified under California's Low Carbon Fuel Standard, implemented to reduce the carbon intensity of transport fuel.

The company says its technology diverts large volumes of MSW from local landfills, helping reduce methane gas generated by waste decomposition. Fulcrum uses nonrecyclable, landfill-bound MSW as feedstock to produce energy.

“Fulcrum’s novel process of biofuel production can make a meaningful contribution to tackling environmental challenges by reducing greenhouse gas emissions and addressing landfill capacity shortages,” says Moohwan Kim, executive vice president of SK Inc. “Leveraging Fulcrum’s innovative process, SK Inc. will explore further opportunities with one of its affiliates, SK Ecoplant, which has transformed into an environmental and energy solution provider, to identify opportunities in the domestic market and at the same time expand its presence in the global waste-to-fuel and bioenergy markets.”