LG Chem announced on Jan. 18 that it has signed a master agreement in Rome, Italy, with ENI to establish a joint venture for next-generation bio-oil. The signing ceremony was attended by key figures including Claudio Descalzi, CEO of ENI; Stefano Ballista, CEO of ENI Live; Vice Chairman Shin Hak-cheol of LG Chem; and Noh Guk-rae, the head of the Petrochemical division.
ENI Group, Italy’s largest state-owned energy company, is pursuing various sustainable strategies, including biofuels and renewable energy, to achieve carbon neutrality by 2050. ENI Live (formerly ENI SM), a subsidiary of ENI Group, is responsible for eco-friendly fuel operations focused on Hydro-treated Vegetable Oil (HVO).
Both companies aim to complete an HVO production plant at LG Chem’s Daejeon site by 2026, with an annual capacity of 300,000 tons. HVO, a next-generation bio-oil, is produced by adding hydrogen to plant-based materials like waste cooking oil. Its ability to remain fluid even at low temperatures makes it suitable for use not only in vehicles but also as a sustainable biofuel for aviation.
With global renewable energy policies and mandates for eco-friendly aviation fuel and diesel, the demand for HVO in the global market is expected to grow from 9.7 million tons in 2021 to 40 million tons by 2030, at an average annual growth rate of 20%.
Additionally, LG Chem plans to continue expanding the production of plastic products such as Super Absorbent Polymer, Acrylonitrile Butadiene Styrene, and Polyvinyl Chloride using eco-friendly bio-raw materials like HVO. In relation to this, LG Chem has increased its range of ISCC Plus certified products, a leading indicator of sustainability for eco-friendly products made from plant-based materials, to over 50.
Vice Chairman Shin Hak-cheol of LG Chem stated, “LG Chem will actively support the successful implementation of this project and, as a leading company in the eco-friendly plastic industry, will continue to pursue sustainable development and achieve our carbon neutrality goals.”