Eni, LG Chem sign JV agreement for biorefinery development in South Korea

From left, Shin and Descalzi (Photo: Eni)

South Korean chemical company LG Chem and Enilive, the Italian energy firm Eni’s company dedicated to biorefining and related activities, announced Jan. 19 that they have moved a step closer to a final-investment decision on the project of a new biorefinery in South Korea by signing the joint-venture agreement.

The agreement was signed in Rome by Eni CEO Claudio Descalzi and LG Chem CEO Shin Hak-cheol.

Last September, Enilive and LG Chem announced they were exploring the possibility to develop and operate a new biorefinery at existing LG Chem’s integrated petrochemical complex in Daesan, South Korea.

LG Chem's petrochemical complex in Daesan, South Korea, southwest of Seoul, is the planned location for the new biorefinery. (Photo: Eni)

The goal is to complete the biorefinery by 2026.

The biorefinery is being scaled to process approximately 400,000 tons of renewable biobased feedstocks annually using Eni’s Ecofining™ technology and produce multiple products including sustainable aviation fuel (SAF), renewable diesel and bionaphtha.

LG Chem and Eni will combine expertise in this initiative.

The final investment decision is expected this year.

“Biofuel production is one of the main pillars of our strategy to contribute to reach net-zero emissions by 2050 also through the sale of increasingly decarbonized products to our clients,” Descalzi said. “The biorefinery project we are working on together with LG Chem is a key element to expand Enilive’s biorefining presence internationally, to raise its capacity from current 1.65 million tons per year to over 5 million tons per year by 2030 and to increase the optionality of SAF production to up to 2 million tons per year from 2030.”

Shin noted, “This agreement holds significant meaning as it represents the collaboration and joint effort of global leading companies towards the common goal of net zero. LG Chem will actively support the successful execution of this project and, moving forward, will solidify its position as a leading company in the ecofriendly plastic industry, achieving sustainable development and carbon neutrality as a true global entity.”