South Korean chemical firm SK Innovation said Wednesday(13 Jul) it has made a $20 million equity investment in US renewable fuels firm Fulcrum BioEnergy.
Fulcrum has commercialized a process to produce synthetic oil for transportation by gasifying household waste.
With the fresh capital, Fulcrum is expected to reach Asian markets, including Korea, under an exclusive licensing agreement with SK Innovation.
Fulcrum began its initial operations of its inaugural biorefinery, the Sierra BioFuels Plant located in Reno, Nevada, in May. The facility, first of its kind in the world, has 40,000 tons of annual production capacity, according to SK Innovation.
Fulcrum was founded in Pleasanton, California, in 2007. Its equity holders include US Renewables Group, Rustic Canyon Partners, Waste Management as well as Cathay Pacific and United Airlines.
The announcement by SK Innovation comes months after its holding company SK Inc. and Korean private equity firm JKL Partners jointly invested $50 million in the company in December.
SK Innovation said the decision is aimed at enhancing its green business portfolio in line with its net-zero goal by 2050.
Previously, SK Innovation in May signed an agreement on business cooperation with TerraPower, a US small modular reactor company, and invested in Amogy, a US developer of a fuel cell system using ammonia as a fuel, in June.