LG Chem to establish biofuel joint venture

Noh Kug-lae, left, head of petrochemical business at LG Chem, poses with Dansuk Industrial Chairman Han Seung-uk at the latter's headquarters in Siheung, Gyeonggi Province, Thursday, after signing a contract to build a hydrotreated vegetable oil manufacturing facility. Courtesy of LG Chem

By Baek Byung-yeul

LG Chem, the country's top chemical company, said Thursday it has agreed with a local biodiesel company to establish a joint venture in South Korea.

In a statement, LG Chem, also the parent company of LG Energy Solution (LGES), said the main purpose of the venture is aimed at securing the stable supply of bio-materials as the venture is set to mass-produce hydrotreated vegetable oil, a biofuel made by the hydrocracking or hydrogenation of vegetable oil.

The timeline for the completion of the plant in collaboration with Dansuk Industrial has been set for 2024. Hydrotreated vegetable oil (HVO) is categorized as a biofuel and it has been used as a core substitute for diesel, propane and other chemical feedstock. Diesel fuel using hydrotreated oil is referred to as "green diesel."

"The agreement for the creation of the venture will truly help us secure a stable supply of raw materials for the diversification of eco-friendly products," Noh Kug-lae, chief of LG Chem's petrochemical business division, was quoted as saying in the press release.

The demand for HVO is expected to rise over the course of the next few years on the back of governments' initiatives for renewable energies and required use of eco-friendly jet fuel and as well as diesel.

Site Map E-paper Subscribe Register LogIn
Site Map E-paper Subscribe Register LogIn