[Let's Run Again K Construction] Transforming into an Environment and Energy Company... Complete Transformation into SK Ecoplant in 2 Years

46 Years of Bold Challenges in Construction
Transforming into a Leading Domestic Environmental Company
Rising to No.1 in Water Treatment and General Incineration Fields

SK Ecoplant's subsidiary Samkang M&T, acquired by SK Ecoplant, is manufacturing the country's first offshore wind turbine substructures and exporting them to JDN in Belgium. (Provided by SK Ecoplant)

[Asia Economy Reporter Kim Min-young] SK Ecoplant, which has been dedicated to the construction industry for 46 years, has completely transformed into an environmental and energy company just two years after changing its name. This transformation is the result of focusing its capabilities on creating a solution-based business model that addresses environmental and energy-related issues, leveraging the construction know-how and engineering capabilities accumulated in the existing construction business as future growth engines in the environmental and energy sectors.

The area SK Ecoplant has aggressively targeted is precisely the "environment." After acquiring Korea’s leading water treatment and waste management company, Environmental Facilities Management (formerly EMC Holdings), in 2020, SK Ecoplant has been expanding its environmental business through a "bolt-on strategy," acquiring related companies to increase market dominance. Within two years, it has acquired or invested in 12 companies specializing in waste treatment, electrical and electronic waste (e-waste), and recycling. As a result, it has secured the position of Korea’s leading environmental company, ranking first in water treatment, first in general incineration, and third in landfill within just over two years.

SK Ecoplant is also leading the advancement of the waste industry centered on artificial intelligence (AI) and digital transformation (DX). The company is expanding its business not only in waste treatment and management but also upstream into recycling-focused areas. It is achieving results in so-called "urban mining" businesses, such as energy recovery from waste through steam and power generation using incineration facility waste heat, green hydrogen production using sewage sludge, and resource recovery from e-waste and waste batteries by extracting rare metals.

◆Waste in the Digital Era...Ready for Advanced Waste Management= SK Ecoplant’s environmental business differs from the past methods that ended with simply burning and burying waste. Traditionally, domestic incineration facilities focused on burning waste and then purifying the emitted pollutants to meet regulatory standards. However, as Korea’s number one incineration company, SK Ecoplant has taken a step further. It applies solutions to minimize pollutant emissions in advance and has established a circular economy model that utilizes waste heat generated during incineration for steam and electricity production.

As the proportion of steam thermal energy increases, it is expected that in the future, revenues from waste incineration and energy sales from electricity and steam will become comparable. This creates a dual benefit of processing waste and selling energy. This approach, which adds resource recovery, energy conversion, and recycling to the waste lifecycle, is the circular economy model envisioned by SK Ecoplant, Korea’s leading incineration company.

SK Ecoplant collaborated with Amazon Web Services (AWS) to develop Korea’s first AI solution optimized for incinerator operation. This solution successfully determines the optimal incinerator temperature (950?1050 degrees Celsius) to minimize pollutant emissions while enhancing operational efficiency. To date, this AI solution has been applied to five incineration plants, resulting in an average reduction of carbon monoxide emissions by 49.7% and nitrogen oxide emissions by 12.4%.

To minimize unnecessary waste emissions and collection, SK Ecoplant is also advancing functions that analyze waste type, volume, weight, and emission patterns. Internet of Things (IoT) sensor technology will be applied to provide updates on emission and storage volumes, changes in transport vehicle load weight, and vehicle location analysis. Wavle, recognized for this innovation, will receive the Smart City Innovation Award at CES 2023, the world’s largest electronics and IT exhibition held in Las Vegas, USA, in January next year.

◆Waste Battery Market Expected to Reach KRW 600 Trillion by 2050...Leading the Global Waste Battery Recycling Market= Considering the global increase in electric vehicle sales over the past 2-3 years and battery lifespan, rapid growth in the waste battery market is expected from 2030. It is forecasted that the waste battery market will grow to KRW 600 trillion by 2050.

This is why SK Ecoplant signed a Stock Purchase Agreement (SPA) with the US company Ascend Elements last August. Ascend Elements possesses innovative technology that removes impurities from waste batteries and directly produces precursors (the basic materials for cathode active materials, a core battery component). SK Ecoplant is also pursuing joint entry into the European waste battery recycling market with CNGR, a global precursor company based in China.

SK Ecoplant’s ultimate goal is to grow into a global comprehensive environmental company. In February, SK Ecoplant acquired TES, a global electric and electronic waste recycling company headquartered in Singapore. With the acquisition of TES and investment in Ascend Elements, an innovative US waste battery recycling company, SK Ecoplant has completed the value chain for the waste battery recycling business. It plans to actively target the waste battery recycling market through this.

TES is recognized for having the most extensive national bases in the industry and securing a value chain across all related business areas. It currently operates 43 processing facilities in 22 countries worldwide, including advanced countries such as North America and Europe. SK Ecoplant also acquired shares in Senbairo, Malaysia’s largest state-owned comprehensive environmental company. Establishing a strategic partnership with Khazanah, Malaysia’s state-owned fund and the owner of Senbairo’s shares, is considered a significant achievement. SK Ecoplant plans to use four Southeast Asian countries?Singapore, Malaysia, Indonesia, and Vietnam?as footholds to enter advanced markets such as the US and Europe.