LG Chem and Eni to construct Korea's first HVO plant

LG Chem and Eni Sustainable Mobility plan to construct the first hydrotreated vegetable oil (HVO) plant in South Korea, aiming to boost eco-friendly material production. The facility is expected to process 400,000 tons of bio-feedstocks annually.

LG Chem's chemical complex in Daesan, South Chungcheong [LG CHEM]

LG Chem and Italy's Eni Sustainable Mobility will together build a hydrotreated vegetable oil (HVO) plant in Daesan, South Chungcheong, in a move to ramp up the production of eco-friendly materials, the chemical company said Thursday.

The companies are currently examining the technical and economic feasibility of the proposed project, with the final decision for the investment scheduled for 2024.

The potential biorefinery is expected to process approximately 400,000 tons of bio-feedstocks annually, and will be the first HVO plant in Korea.

HVO is a renewable diesel fuel derived from hydrogenation and the hydrocracking of various vegetable oils, such as soybean, sunflower and palm oil, as well as animal fats. It can be used in conventional diesel engines, pure or blended with fossil diesel.

With the factory, LG Chem will be able to build “infrastructure to secure raw materials that are needed to make polyvinyl chloride and super absorbent polymer (SAP),” the world’s first SAP material with ISCC Plus certification, an international certification for eco-friendly bio products that meet European Union's stringent Renewable Energy Directives standards.

The chemical company owns 50 products that have the certification so far.

With global companies constantly moving to go green, demand for HVO, which was about 9.7 million tons in 2021, will grow at an annual rate of 20 percent to reach 40 million tons by 2030, according to LG Chem.

Eni will bring its extensive experience in biorefining, along with its Ecofining technology. In 2014, Eni accomplished the world’s first refinery-to-biorefinery conversion at Porto Marghera, Venice, followed by a second converted biorefinery that has been in operation in Gela, Italy since 2019.

BY SARAH CHEA [chea.sarah@joongang.co.kr]