LG Chemical (LG Chem) is breaking ground on South Korea’s first eco-friendly bio-oil plant using plant-based materials.
The company’s subsidiary, LG-Eni BioRefining, announced on Monday that it has begun construction of a hydrotreated vegetable oil (HVO) plant in Seosan-si, South Chungcheong Province.
This pioneering facility, set to be South Korea’s first HVO plant, is scheduled for completion in 2027 with an annual production capacity of 300,000 tons (about 661,387,000 pounds).
HVO is an environmentally friendly product created by adding hydrogen to renewable vegetable oils, such as used cooking oil. It offers significant greenhouse gas emission reductions and remains fluid at low temperatures, making it versatile for various applications, including sustainable aviation fuel (SAF), biodiesel, and bio-naphtha.
While SAF is used as aircraft fuel, bio naphtha, often called the rice of petrochemicals, serves as a key raw material for ethylene production.
LG Chem aims to expand its portfolio of Bio Circular Balanced (BCB) products, which have received global eco-certification (ISCC PLUS). This expansion will involve incorporating bio-naphtha into the production of a high-value synthetic resin (ABS) for home appliances and automobiles, a high-elasticity resin (EVA) for sports equipment, and superabsorbent polymer (SAP) for hygiene products.
In December last year, LG Chem established a joint venture, LG-Eni BioRefining, with Eni’s subsidiary, Enilive.
Eni, one of Europe’s largest integrated energy companies, operates a 2 million-ton (about 4,409,250,000 pounds) HVO facility in Italy. The company brings extensive experience in large-scale production processes and advanced eco-friendly refining technologies to the partnership. Eni also boasts a diverse global supply chain for eco-friendly raw materials across Europe, Africa, and Asia.
Stefano Ballista, Chief Executive Officer (CEO) of Enilive, stated that this groundbreaking represents a crucial step in realizing Enilive’s strategy to expand sustainable products while cementing its leadership in the eco-friendly fuel production sector.
Shin Hak-cheol, Vice Chairman of LG Chem, emphasized that they are shifting their business portfolio towards a low-carbon foundation, aiming for sustainable growth and profitability. Further adding that it will continue to drive innovation and commercialization in eco-friendly fuels and bio raw materials like HVO, enhancing its global competitiveness and swiftly meeting customer demands.