LG Chem is set to embark on a groundbreaking initiative by constructing the very first domestic Hydrogenated Vegetable Oil (HVO) factory in Daejeon, South Korea. This ambitious endeavor is being carried out in partnership with ENI S.M., a subsidiary of Italy's largest state-owned energy company, ENI, and is slated for completion by the year 2026.

The collaboration between LG Chem and ENI S.M. was officially announced on September 14th. ENI S.M., as a subsidiary of the renowned Italian energy giant, specializes in eco-friendly fuel operations, with a primary focus on HVO (Hydrogenated Vegetable Oil). This partnership is rooted in their shared commitment to the development and production of sustainable energy sources.

The journey towards this significant milestone commenced earlier in February when both companies signed a heads of agreement (HOA) outlining their intention to establish a joint venture factory in Daejeon. Presently, they are in the midst of conducting comprehensive technical and economic feasibility studies. The ultimate goal is to bring to fruition a state-of-the-art facility capable of annually producing a staggering 300,000 tons of HVO by 2026. To achieve this, substantial investments in the hundreds of billions of won are anticipated.

An official from LG Chem expressed the significance of this venture by stating, "This is the first time an HVO factory capable of integrated production from raw material to final product is being constructed domestically." Indeed, the scale and ambition of this project are unprecedented in South Korea, marking a pivotal moment in the nation's efforts to advance sustainable and eco-friendly energy solutions.

HVO, derived from the addition of hydrogen to plant-based materials, notably waste cooking oil, represents the cutting edge of bio-oil technology. It offers an impressive reduction of carbon emissions, exceeding 90% when compared to traditional fossil fuels. One of its standout characteristics is its ability to remain in liquid form even at extremely low temperatures. This unique feature opens up a world of possibilities, extending its applications beyond just vehicles to include aviation fuel and petrochemical raw materials. The soaring global demand for HVO is largely driven by increasingly stringent renewable energy policies and mandates for the use of eco-friendly aviation fuel and diesel.

With the establishment of this groundbreaking joint venture, LG Chem is strategically positioned to supply crucial materials utilized in a diverse range of products. These products span various industries, including super-absorbent polymers (SAP), acrylonitrile butadiene styrene (ABS), polyvinyl chloride (PVC), and many more. LG Chem has been diligently expanding its product portfolio to encompass more than 50 ISCC Plus-certified items, firmly attesting to the sustainability and eco-friendliness of products derived from plant-based materials.

For ENI S.M., this collaboration signifies a significant milestone in their global expansion strategy. It serves as a crucial cornerstone for their entry into the Asian market, a region with immense potential and growing demand for sustainable energy solutions.

In conclusion, LG Chem's ambitious plan to establish the first domestic HVO factory in collaboration with ENI S.M. is poised to be a transformative endeavor in South Korea's pursuit of sustainable and eco-friendly energy sources. As they work towards realizing their goal of producing 300,000 tons of HVO annually by 2026, this partnership promises to be a game-changer in the field of bio-oil production, offering a greener and more sustainable future for the energy sector. Moreover, this venture positions LG Chem as a key player in supplying essential materials for various industries, while also paving the way for ENI S.M.'s strategic expansion into the Asian market.