In pursuit of carbon neutrality, LG Chem launches large-scale bio oil production base in Seosan with 300,000-ton capacity
LG Chem has taken a bold step toward carbon neutrality by commencing construction of Korea’s first eco-friendly hydrotreated vegetable oil (HVO) plant using plant-based raw materials.
On August 4, the company announced that its subsidiary, LG EnBio Refining, has officially broken ground in Seosan, South Chungcheong Province. The facility, with an annual production capacity of 300,000 tons, is scheduled for completion by 2027.
HVO is a sustainable fuel made by adding hydrogen to vegetable oils such as used cooking oil and palm oil. It is regarded as a promising alternative energy source that significantly reduces greenhouse gas emissions. Its excellent cold-weather performance makes it ideal for applications such as sustainable aviation fuel (SAF), biodiesel, and bio-naphtha.
LG Chem plans to expand its share of BCB (Bio Circular Balanced) certified products—eco-friendly materials for home appliances, automobiles, sports goods, and hygiene products—by using HVO as a core ingredient.
According to industry forecasts, global demand for HVO is projected to surge from 23 million tons in 2024 to 53 million tons by 2030, with an annual growth rate of 18%. HVO is poised to become a key driver in the green fuel sector.
To meet this soaring demand, LG Chem partnered last December with Enilive, a subsidiary of Italian energy giant Eni, to establish the joint venture LG EnBio Refining.
Eni operates a 2-million-ton HVO plant in Italy and maintains a robust supply chain of eco-friendly raw materials across Europe, Africa, and Asia. This partnership provides LG Chem with a strong global foundation.
Stefano Ballista, CEO of Enilive, remarked, “This groundbreaking not only brings our sustainability strategy to life but also reaffirms our leadership in green fuel production.”
Shin Hak-cheol, Vice Chairman of LG Chem, added, “We are accelerating the transition of our business portfolio toward low carbon, aiming to achieve both sustainable growth and profitability. Through continued innovation and commercialization in green fuel and bio-based materials, we will enhance our global competitiveness and swiftly respond to customer needs.”
This project is viewed as a strategic move that sets the direction for Korea’s chemical industry in the era of ESG management and green growth. The Seosan plant will serve as a key global hub for sustainable innovation and production.