LG Chem-GS Caltex to Jointly Mass Produce Biodegradable Plastic Raw Materials

Signing of Joint Development Agreement (JDA) for Mass Production Technology of Biodegradable 3HP Raw Material
Petroleum and Chemical Companies Collaborate on Eco-Friendly Material Development

[Asia Economy Reporter Hwang Yoon-joo] LG Chem is partnering with GS Caltex to jointly develop mass production technology for eco-friendly raw materials aimed at carbon neutrality.

On the 18th, LG Chem announced that it signed a Joint Development Agreement (JDA) with GS Caltex at LG Science Park in Magok to develop mass production technology for 3HP (3-Hydroxypropionic acid), a biodegradable plastic raw material, and to produce prototypes.

3HP is an eco-friendly substance produced through microbial fermentation processes using bio-based raw materials such as glucose and crude glycerol (derived from vegetable oils). It is gaining attention as a next-generation platform chemical that can be used as a raw material for various materials including biodegradable plastics, superabsorbent polymers (SAP) used in diapers, and carbon fibers.

LG Chem independently possesses world-class 3HP fermentation technology, and through this, succeeded last October in developing PLH (Poly Lactate 3-Hydroxypropionate), a biodegradable new material capable of achieving mechanical properties equivalent to synthetic resins for the first time in the world.

This agreement was made possible because the synergy between LG Chem’s fermentation production technology and GS Caltex’s process facility technology aligned with both companies’ interests in commercializing 3HP mass production.

Starting in 2023, the two companies plan to accelerate entry into the biodegradable materials and various bioplastics markets through the production of 3HP prototypes. They also agreed to actively discuss future collaboration across the white bio sector and ways to realize a sustainable bio-ecosystem.

The collaboration between the two companies is expected to contribute to carbon neutrality, resource circulation, and solving microplastic issues. According to market research firms, the global bioplastics market is projected to grow at an average annual rate of 23%, expanding from 12 trillion won in 2021 to 34 trillion won by 2026.

Huh Se-hong, President of GS Caltex, stated, "Through the cooperation in developing eco-friendly raw materials, both companies will strengthen ESG capabilities by contributing to the circular economy and carbon reduction, while creating economic value through high value-added products."

Shin Hak-cheol, Vice Chairman of LG Chem, said, "With carbon neutrality becoming a global mega trend, it is highly meaningful that two leading companies in the refining and chemical industries are collaborating for the commercialization of sustainable new materials," adding, "We will focus on research and development in the eco-friendly materials field."

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