State spending on strategic industries to surge 43% next year
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Noh Kug-lae, president of LG Chem’s petrochemical operations (right) and Han Seung-uk, chairman of Dansuk Industrial, pose after signing a head of agreement at Dansuk Industrial headquarters in Siheung, Gyeonggi Province, Thursday. The two agreed to form a joint venture and build South Korea’s first hydrogen-treated vegetable oil factory in Daesan petrochemical complex in South Chungcheong Province. (LG Chem)
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LG Chem said Thursday it will establish South Korea’s first hydrogen-treated vegetable oil factory to bolster its green product portfolio.
The HVO factory will be built in Daesan petrochemical complex in South Chungcheong Province by 2024, according to the nation’s leading chemical firm. LG Chem will first form a joint venture with Dansuk Industrial, a local chemical company, and build the factory together.
HVO is a diesel substitute made from vegetable oil or waste cooking oil and treated with hydrogen. The next-generation fuel doesn’t freeze at low temperatures, making it suitable for cars and airplanes.
LG Chem estimates global HVO demand to surge from 6 million metric tons in 2020 to 300 million tons in 2025 with an annual growth of over 50 percent, as the use of eco-friendly fuel is becoming mandatory in the transportation sector.
The partnership will allow LG Chem to secure a stable supply of HVO and manufacture industrial plastics with it, it said.
By Kim Byung-wook (kbw@heraldcorp.com)