Gevo and LG Chem Extend Bio-Propylene Development Agreement to Accelerate Commercialization

Gevo, a leader in sustainable technology, and LG Chem, a major global chemical company, have renewed and extended their joint development agreement (JDA) to advance the commercialization of bio-propylene. This renewed commitment aims to accelerate the commercialization of Gevo’s Ethanol-to-Olefins (ETO) technology, which converts renewable ethanol into key olefins used in various chemical and plastic products, including bio-propylene.

The agreement extension comes ahead of the originally planned timeline, highlighting the momentum both companies are gaining in scaling up the technology. LG Chem is now assessing its existing assets to deploy Gevo’s ETO technology, with a focus on project scale and target markets for the end products. This step is seen as a critical move in advancing the global shift towards sustainable and renewable chemical production.

Gevo’s Chief Carbon and Innovation Officer, Dr. Paul Bloom, emphasized the significance of the partnership, noting that it serves as a prime example of how the company is accelerating the development of its patented ETO technology. "Our ethanol-to-olefin process holds immense promise to decarbonize a substantial portion of the market for propylene," Dr. Bloom said. "LG Chem is starting commercial activities ahead of our original timeline, a crucial step towards enabling renewable chemicals."

ETO technology allows the production of carbon-neutral or even carbon-negative drop-in replacements for traditional petroleum-based olefins, which are essential building blocks in a wide range of chemical products. These include sustainable aviation fuel, renewable chemicals, and bio-based plastics. Bio-propylene, one of the key products derived from this technology, is expected to play a pivotal role in the expanding bioplastic market and the circular economy. With its potential to replace fossil-based raw materials, bio-propylene is poised to help reduce the carbon footprint of products across various industries, including automotive, construction, and consumer goods.

LG Chem’s Vice President and Head of Petrochemicals R&D, Dong-hyun Cho, stressed the importance of partnerships in driving sustainability. "Our joint development agreement with Gevo is already helping LG Chem to shape sustainable and eco-friendly future business strategies," Cho said. "Leveraging proprietary technologies like ETO will play a crucial role in scaling pathways to sustainable products."

As the project progresses, bio-propylene’s ability to replace petroleum-based ingredients in plastic products is expected to drive substantial growth in the bioplastics sector. Products such as auto parts, flooring, and even diapers can benefit from the transition to bio-based materials with lower or negative carbon footprints, signalling a significant step toward a more sustainable and circular economy.