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Sustainability / Natural Solutions PVC, Plasticizers and Sustainability
LG Chem has signed a Heads of Agreement (HOA) for the establishment of a hydro-treated vegetable oil (HVO) joint venture at the Dansuk Industrial headquarters in Siheung, Gyeonggi-do, in the presence of executives from both companies, including Kug Lae Noh, President of the Petrochemicals Company, and Seung-Wook Han, CEO of Dansuk Industrial.
First HVO Plant in the Country
The two companies will sign the definitive agreement in the first quarter of next year and aim to complete the construction of the production plant by 2024. This is the first time that an HVO plant will be built in Korea, and this plant is one of 10 new plants at the Daesan Complex recently announced by LG Chem.
HVO is a next-generation bio-oil produced through hydro-treatment of vegetable raw materials such as waste cooking oil and palm by-products. It has superior non-freezing properties even at low temperatures, so it can be used not only for vehicles but also for aviation fuel and petrochemical raw materials. If biodiesel is the first-generation bio-fuel for vehicles, HVO is a technologically advanced second-generation bio-fuel.
This cooperation was formed due to alignment of interest between LG Chem, which is focusing on expanding bio-balanced products that contribute to carbon emission reduction and securing eco-friendly raw materials, and Dansuk Industrial, which is trying to expand its business to the next-generation bio-fuel market.
Base for Supplying Raw Materials for PVC
When a joint venture is established, LG Chem will prepare a base for supplying raw materials used to produce bio-SAP (high absorbent resin), ABS (high value synthetic resin), and
PVC (polyvinyl chloride) through internalization of HVO. LG Chem is planning to expand its ISCC Plus international certified products, which are a representative means of proving sustainability of eco-friendly bio products, to more than 30 products by the end of this year.
Kug Lae Noh, President of the Petrochemicals Company, stated, “Through this cooperation, we are able to strengthen the foundation for a stable supply of raw materials for the expansion of eco-friendly products. We will continue to shift our business portfolio to eco-friendly products and actively target related markets.”
Source: LG Chem