LG Chem Signs MOU with Neste, the World's Largest Biodiesel Company

LG Chem to Secure Stable Supply of Eco-Friendly Synthetic Resin Bio Raw Materials
Aiming for Practical Product Production in the Second Half of Next Year

[Asia Economy Reporter Hwang Yoon-joo] LG Chem is embarking on the production of eco-friendly synthetic resins using bio-based raw materials.

On the 5th, LG Chem announced that it signed a strategic partnership (MOU) with Neste, the world's largest biodiesel company based in Finland, to expand bio-based eco-friendly businesses and related markets.

Neste is a global leader in the biodiesel sector with proprietary process technology, generating 80% of its operating profit from bio-based raw materials and eco-friendly products derived from them.

Through this agreement, both companies will jointly explore commercialization opportunities for various products based on bio raw materials to strengthen market competitiveness, share market information in Asia, Europe, and globally, and actively cooperate in developing creditworthy products. They aim to begin actual product manufacturing by the second half of next year.

Although specific quantities and the cooperation period cannot be disclosed due to the agreement between the two companies, LG Chem is expected to secure a stable supply of bio raw materials necessary for eco-friendly synthetic resin production over the coming years.

Neste’s bio raw materials are produced from renewable vegetable oils such as waste cooking oil and palm oil, which are eco-friendly substances with significant greenhouse gas reduction effects compared to fossil raw materials. Using these, LG Chem plans to produce bio-based PO (polyolefin), SAP (superabsorbent polymer), ABS (high value-added synthetic resin), PC (polycarbonate), and PVC (polyvinyl chloride).

This agreement aligns with LG Chem’s sustainability strategy focusing on carbon neutrality and resource circulation, and Neste’s interest in expanding its business portfolio into the chemical sector. Neste is diversifying its portfolio by extending its bio raw material business into petrochemicals, while LG Chem can integrate renewable bio raw materials into various high value-added products based on its technological capabilities and vertical integration.

Through this partnership, LG Chem will accelerate its sustainability strategy by reducing carbon emissions and greenhouse gases.

In July, LG Chem became the first domestic chemical company to declare '2050 Carbon Neutral Growth' in response to climate change. This partnership enables the application of bio raw materials to various core product lines. Replacing fossil raw materials with bio raw materials can reduce greenhouse gas emissions by approximately 50% based on the same input volume compared to existing products. LG Chem plans to gradually increase the proportion of bio raw materials applied in the future.

Additionally, LG Chem aims to obtain ISCC certification for eco-friendly resins produced from bio raw materials by the first half of next year. Through this, they plan to actively target related markets with eco-friendly synthetic resins that reduce carbon emissions while maintaining the same physical properties as existing products.

This content was produced with the assistance of AI translation services.