LG Chem and Enilive have taken a substantial stride towards the final investment decision for their groundbreaking biorefinery project in South Korea. The crucial joint venture agreement, sealing this commitment, was formally signed in Rome by Claudio Descalzi, the CEO of Eni, and Shin Hak-cheol, the CEO of LG Chem.

This strategic collaboration had its roots in September of the preceding year when Enilive, a subsidiary fully owned by Eni, and LG Chem publicly disclosed their exploration into the feasibility of establishing a new biorefinery within LG Chem's integrated petrochemical complex in Daesan, South Korea. The objective of this ambitious venture is to complete the biorefinery's construction by 2026, processing around 400,000 tons of renewable bio-feedstocks annually. The core technology driving this initiative is Eni's Ecofining™, enabling the production of various products, including Sustainable Aviation Fuel (SAF), Hydrotreated Vegetable Oil (HVO), and bio-naphtha. This collaboration leverages the respective strengths and expertise of LG Chem and Eni. A decisive final investment decision is anticipated to be reached in the year 2024.

Speaking on the significance of the biorefinery project, Eni CEO Claudio Descalzi underscored its integral role in their strategic approach towards achieving net zero emissions by 2050. He emphasized the importance of producing biofuels as a pivotal element in their strategy, not only for environmental sustainability but also for providing increasingly decarbonized products to their clients. The biorefinery collaboration with LG Chem, according to Descalzi, expands Enilive's biorefining footprint on the global stage. The projected expansion aims to increase their capacity from the current 1.65 million tons per year to over 5 million tons per year by 2030, with a specific focus on ramping up Sustainable Aviation Fuel production to potentially reach 2 million tons per year by 2030.

In response, LG Chem CEO Shin Hak-cheol expressed the significance of the signed agreement, highlighting its representation of a collective effort by globally renowned companies towards the shared objective of achieving 'Net Zero.' He articulated LG Chem's active commitment to supporting the seamless execution of the project. Furthermore, Shin Hak-cheol asserted that this collaboration positions LG Chem as a prominent player in the eco-friendly plastics industry. This, he believes, is a critical step towards sustainable development and the attainment of carbon neutrality, establishing LG Chem as a truly influential global entity.

The collaborative initiative between LG Chem and Enilive not only aligns with the global trend towards sustainability but also showcases the commitment of major corporations to contribute meaningfully to environmental goals. By combining their expertise and resources, these industry leaders are not only investing in a groundbreaking biorefinery but also contributing to the broader vision of a greener and more sustainable future. As the final investment decision approaches in 2024, the industry and environmental communities alike will be watching closely, eager to witness the tangible impact of this forward-thinking collaboration.