Fluorine Korea, a subsidiary of advanced materials specialist KNW (CEO Won-seok Oh), has received final approval for its greenhouse gas reduction project using plasma incineration of waste SF6 (sulfur hexafluoride), and is expected to strengthen its ESG (environment, society, and governance) management and generate revenue in the carbon emissions market.

Fluorine Korea announced on the 7th that its methodology for a greenhouse gas reduction project to recover sulfur hexafluoride (SF6) gas that domestic and international organizations and companies must discard after using as high-voltage insulating gas (GIS) and incinerate it through plasma decomposition equipment has received final approval from the Emissions Certification Committee under the Ministry of Environment.

A company official said, “We are concretizing the business based on the approved methodology as above, and we expect the profitability of this business to increase as the carbon emission market price has recently skyrocketed.” The official added, “The business is planned for a total business period of 21 years (7-year renewable, extendable twice). After this methodology approval, we will pursue business plan approval and introduction of plasma decomposition equipment. Our goal is to generate revenue within the third quarter of 2024.”

Since 2011, Fluorine Korea has been generating operating profits of approximately KRW 2.5 billion annually through a carbon emissions business that utilizes technology to recover waste SF6 gas and reintroduce it into the process.

The company expects that the rise in global carbon emissions prices, centered around Europe, will also have a positive effect on domestic carbon emissions trading operators.

Fluorine Korea CEO Oh Beom-seok said, “In addition to this waste SF6 gas reduction project, we are also discovering additional business models to reduce greenhouse gas emissions.He said, “We will strive to fulfill our social responsibility through the ESG axis,” and “In addition to the environmental (E) and social (S) aspects, we will also focus on improving the governance (G) structure through internal reorganization ahead of the IPO and strive to strengthen ESG management.”

Meanwhile, Fluorine Korea is pursuing a KOSDAQ listing targeting 2023, and selected Korea Investment & Securities as the lead manager in November of last year.

Fluorine Korea specializes in producing F2 gas, SF6 gas used in semiconductor manufacturing processes, and FEC, a secondary battery material, and was acquired by KNW in March of last year.