LG Chem-GS EPS Join Hands for Biomass Business Utilizing Waste Wood

Signing of Basic Agreement (HOA) for Business Cooperation in the Eco-friendly Energy Sector

Noh Guk-rae, Head of Petrochemical Business Division at LG Chem (left), is taking a commemorative photo with Jung Chan-su, CEO of GS EPS, after signing a basic agreement (HOA) for cooperation in biomass-based eco-friendly energy business at GS Tower, Yeoksam, Seoul on the 13th.

[Asia Economy Reporter Oh Hyung-gil] LG Chem and GS EPS are launching an energy business utilizing biomass such as waste wood.

On the 13th, the two companies announced that they signed a basic agreement (HOA) for cooperation in a biomass-based eco-friendly energy business at GS Tower in Yeoksam, Seoul.

They plan to use renewable energy fuel made by chipping wood waste generated from households or industrial sites. Since these resources were previously incinerated or landfilled, the European Union (EU) also recognizes waste wood as sustainable biomass.

The two companies will review the feasibility of jointly establishing a biomass power plant that produces industrial steam and electricity using waste wood at LG Chem's Yeosu plant by 2025, and plan to strengthen the institutional foundation for renewable energy direct power purchase agreements (PPA).

Once the joint venture is established, LG Chem will be able to produce steam required for petrochemical plants and complex operations using biomass. This is expected to reduce carbon emissions by approximately 400,000 tons annually, which is equivalent to planting 2.8 million pine trees.

Currently, GS EPS operates Asia's first 100MW-class biomass power plants Units 1 and 2 in Dangjin, Chungnam, and plans to apply its accumulated business capabilities, operational know-how, and supply chain network to this joint project.

Jung Chan-soo, CEO of GS EPS, stated, "Based on GS EPS's core competencies in biomass power generation and other eco-friendly energy, we will continuously cooperate to help LG Chem achieve Net Zero."

No Guk-rae, Head of LG Chem's Petrochemical Business Division, said, "We have been able to further strengthen the foundation for eco-friendly energy to achieve Net Zero. We will accelerate the transition to carbon neutrality across the entire value chain and lead the rapidly growing eco-friendly market."

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