LG Chem and Dansuk to build HVO plant in South Korea

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Type of post: NEWS IN BRIEF.

LG Chem will partner with biodiesel company Dansuk Industrial to establish a joint HVO plant, in order to secure biobased materials required for the production of more sustainable products.

Figure 1. LG Chem has signed a Heads of Agreement (HOA) for the establishment of an HVO joint venture on September 2nd at the Dansuk Industrial headquarters in Siheungin the presence of executives from both companies

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.

When a joint venture is established, LG Chem will prepare a base for supplying raw materials used to produce bio-SAP (high absorbent resin), bio-ABS (high value synthetic resin), and bio-PVC (polyvinyl chloride) through internalization of HVO. LG Chem is planning to expand its ISCC Plus international certified products to more than 30 products by the end of this year.

Dansuk Industrial will enter the HVO business using its first-generation biodiesel export capability and will be able to expand its bio-energy product portfolio to high value-added products centered on next-generation bio-fuels such as jet fuel. Dansuk Industrial is the only company in Korea that can simultaneously export biodiesel to both the US and Europe as it has preemptively acquired various eco-friendly international certifications.

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