ENEOS and SK Innovation collaborate for energy decarbonisation

ENEOS Corporation, led by President Takeshi Saito, and South Korea’s SK Innovation, headed by Vice Chairman and CEO Kim Jun, have inked a memorandum of understanding (MoU) to explore joint ventures in energy supply stabilisation and decarbonisation. The signing ceremony took place in Seogwipo, Jeju Island, South Korea, marking a significant step in their longstanding business relationship.

The primary aim of this MoU is to co-develop and commercialise low-carbon energy technologies, including sustainable aviation fuel (SAF) and carbon capture and recovery. Additionally, the collaboration seeks to bolster oil business competitiveness through enhanced oil product supply, facility operation cooperation, and the inception of new ventures in petrochemicals and lubricants.

Both ENEOS and SK Innovation are dominant players in the oil refining and petrochemical product sales sectors in Japan and South Korea, respectively. Their collaboration dates back to January 2007 when they mutually agreed on a strategic business alliance. This alliance has since fostered joint ventures in lubricant base oil production and paraxylene production.

During the executive meeting on October 31, 2023, both companies acknowledged shared challenges in the current business climate. ENEOS, committed to ensuring a “stable energy and material supply” while advancing towards a “carbon-neutral society,” and SK Innovation, with its “Carbon to Green” corporate strategy, have decided to broaden their cooperative horizons and jointly address these challenges.

Both corporations remain dedicated to contributing to a stable energy supply and the realisation of a carbon-neutral society.

The MoU signing was attended by key executives from both companies, including Kim and Saito, among others.