South Korean chemical company LG Chem is partnering with biodiesel company Dansuk Industrial to build a joint hydro-treated vegetable oil (HVO) plant in Korea, LG Chem announced on 2 September.
The new plant would be built at LG Chem’s Daesan complex by 2024, the company said.
For LG Chem, the venture would allow it to expand its production of eco-friendly certified products using hydrogenated bio-oil, while Dansuk would be able to enter the HVO business and expand its portfolio to next generation bio-energy such as jet fuel.
“Through this cooperation, we are able to strengthen the foundation for a stable supply of raw materials for the expansion of eco-friendly products,” LG Chem’s petrochemicals president Kug Lae Noh said.
“We will continue to shift our business portfolio to eco-friendly products and actively target related markets.”
LG Chem said the two companies would sign the definitive agreement for the project in the first quarter of next year.
Following the establishment of the joint venture, LG Chem said it would prepare a base for supplying raw materials used to produce bio-SAP (high absorbent resin), ABS (high value synthetic resin), and PVC (polyvinyl chloride) utilising HVO and would expand its ISCC Plus International certified range to more than 30 products by the end of this year.