SEOUL, Sept. 14 (Yonhap) -- LG Chem Ltd. said Thursday it has joined hands with a unit of Italian energy giant Eni S.p.A to explore the possibility of building a biorefinery in South Korea, as it seeks to bolster the manufacturing of sustainable fuels and plastics.
If finalized, the joint biorefinery with Eni Sustainable Mobility will be established in LG Chem's Daesan chemical complex, about 80 kilometers southwest of Seoul, the South Korean chemical company said in a release.
The companies are conducting a feasibility study for the proposed project and the final decision will be made by 2024, LG Chem said.
The plant will be built to process some 400,000 tons of bio feedstocks annually using Eni's technology, developed in collaboration with Honeywell UOP, an American refinery solutions provider.
The plant is scheduled to be completed by 2026.
LG Chem said the partnership aims to meet the growing demand for more sustainable fuels and plastics amid the global decarbonization trend.
The plant will also have the flexibility to process renewable bio feedstocks and produce multiple products, including sustainable aviation fuel, hydrotreated vegetable oil and bio naphtha, LG Chem said.
LG Chem has been using bio naphtha since 2020 to produce green plastic products. In 2021, the company began shipping its first bio-balanced super absorbent polymer products to overseas markets.
Under the partnership, Eni is expected to provide LG Chem with sustainable feedstock based on waste and residues from the processing of vegetable oils, used cooking oil, and vegetable oils from drought-resistant crops in degraded or abandoned soils.
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