LG Chem is planning to build the first domestic Hydrogenated Vegetable Oil (HVO) factory in Daejeon in partnership with an Italian state-owned energy company, with completion expected by 2026.
On Sept. 14, LG Chem announced its collaboration with ENI S.M., a subsidiary of Italy’s largest state-owned energy company, ENI, to establish an HVO joint venture factory in Daejeon. ENI S.M. focuses on eco-friendly fuel operations centered on HVO.
The two companies, after signing a heads of agreement (HOA) for the joint venture factory in February, are currently conducting technical and economic feasibility studies. Their aim is to complete a factory capable of producing 300,000 tons annually by 2026, with investment expected to be in the hundreds of billions of won.
An LG Chem official said, “This is the first time an HVO factory capable of integrated production from raw material to final product is being constructed domestically.”
HVO, produced by adding hydrogen to plant-based materials like waste cooking oil, is a next-generation bio-oil. It can reduce carbon emissions by over 90% compared to fossil fuels. Its ability not to freeze at low temperatures allows its use not just for vehicles but also as aviation fuel and petrochemical raw materials. The demand for HVO is increasing, especially due to global renewable energy policies and the mandatory use of eco-friendly aviation fuel and diesel.
With the establishment of the joint venture, LG Chem aims to supply materials used in products such as super-absorbent polymers (SAP), acrylonitrile butadiene styrene (ABS), polyvinyl chloride (PVC), and more. LG Chem has expanded its product range to include over 50 ISCC Plus-certified items, demonstrating the sustainability of eco-friendly products made from plant-based materials. For ENI SM., this venture sets a cornerstone for their entry into the Asian market.