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[Alpha Biz=(Chicago) Reporter Kim Jisun] The LG Chem signed a contract with Italy's state-run energy company, ENI, in Rome, Italy, on 18th local time to establish a joint venture for next-generation bio-oil.
The two companies aim to complete an annual production plant of 300,000 tons of HVO (hydrogenized vegetable oil) at LG Chem's Daesan plant by 2026. HVO is a next-generation bio-oil produced by adding hydrogen to vegetable ingredients such as waste cooking oil.
Under the recent global renewable energy policy and the mandatory use of eco-friendly aviation oil and diesel, HVO's global market demand is expected to reach a high growth rate of 20% annually from 9.7 million tons in 2021 to 40 million tons in 2030.
Also, LG Chem plans to continue to expand the production of plastic products such as SAP (high absorbency resin), ABS (high value-added synthetic resin), and PVC (polyvinyl chloride) using HVO, an eco-friendly biomaterial.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
