• The decision was reached at the extraordinary general meeting of shareholders on the 25th - the company will replace existing obsolete coal power plants with “Eco-friendly” facilities
• The business is expected to become the leading case among district energy businesses in industrial complexes, and also contribute to regional economic growth and greenhouse gas reduction

SK chemicals has decided to make a full-scale commitment to its Eco-friendly LNG-powered Combined Heat & Power (CHP) Plant Business.

SK chemicals (CEO: Jeon Kwang-hyun) announced that an extraordinary general meeting of shareholders was held at the Eco Lab Building in Seongnam, Gyeonggi-do on the 25th. The proposal to establish a new company by physically splitting the utility supply business divisions, such as industrial power and steam at the Ulsan plant, was passed without changes to the original plan. The split agenda was passed with 89.6% of the votes in its favor. In particular, foreign shareholders who participated in the resolution voted 100% in favor of the proposal. Accordingly, the new company SK Multi Utility (tentative name) plans to convert steam and electricity produced and sold by existing coal-fired boilers to LNG CHP plants.

The new corporation, SK Multi Utility (tentative name), will be split on December 1st. The Multi Utility business to be promoted by the new company is to convert 100% of the fuel used at the obsolete combined heat & power facility to LNG following the government's Nationally Determined Contribution (NDC) and the policy to expand the distribution of decentralized energy. This will become a leading case of converting fuel from coal to LNG among district energy businesses in industrial complexes in Korea. The new LNG CHP plant is a 300MW-class power plant, of which construction will begin in 2022 and be completed in 2024. With the implementation of the Multi Utility business, SK chemicals expects to △ improve the air environment and reduce greenhouse gas emissions and △ suppress the construction of transmission and distribution facilities through the introduction of decentralized power generation. The company also plans to expand its ESG management through the new business.

An SK chemicals official said, "SK Multi Utility (tentative name)'s LNG CHP business will contribute to regional economic growth as well as the active fulfillment of the industrial sector's obligation to achieve carbon neutrality (Net Zero)" and "With this spin-off decision, we plan to realize the specialization of each business division and strive to enhance the company's growth and shareholder value."

Meanwhile, SK chemicals held a board of directors meeting on the 7th last month and announced that the company will strengthen communication with shareholders through active shareholder return policies, such as △ execution of free capital increase and △ establishment and announcement of a mid-term dividend distribution policy.


# Photo description: A bird’s-eye view of SK Multi Utility LNG CHP Plant