Dansuk Industrial, LG Chem plan JV to build South Korea’s 1st HVO plant
South Korean biodiesel producer and exporter Dansuk Industrial is partnering with LG Chem to establish the peninsula’s first hydrotreated vegetable oil (HVO), or renewable diesel, manufacturing facility.
A preliminary agreement was signed Sept. 2 for the joint venture. According to LG Chem, the two companies will sign a definitive agreement early next year.
The proposed facility, to be located at LG Chem’s Daesan complex—one of 10 new plants to be located there—is expected to be operational in 2024. No production capacity information was disclosed.
LG Chem plans to use some of the product for renewable chemicals and eco-friendly products.
“When a joint venture is established, LG Chem will prepare a base for supplying raw materials used to produce bioSAP (high absorbent resin), ABS (high value synthetic resin), and PVC (polyvinyl chloride) through internalization of HVO,” LG Chem stated. “LG Chem is planning to expand its ISCC Plus international certified products, which are a representative means of proving sustainability of ecofriendly bioproducts, to more than 30 products by the end of this year.”
Dansuk Industrial, on the other hand, “will enter the HVO business using its first-generation biodiesel export capability and will be able to expand its bioenergy-product portfolio to high value-added products centered on next-generation biofuels such as jet fuel,” according to LG Chem. “Dansuk Industrial currently operates a first-generation biodiesel business based on a stable domestic supply and demand system for raw materials such as waste cooking oil.” Palm byproducts will also be used, LG Chem stated.
Dansuk Industrial currently exports biodiesel to both the U.S. and Europe.