Generating Electricity from Waste Wood... LG Chem-GS EPS to Build Biomass Power Plant
Contract Signed for Biomass Power Plant Producing Industrial Steam and Electricity from Waste Wood on the 20th
Operation Targeted for First Half of 2026
LG Chem Invests a Total of 320 Billion Won in Yeosu Hwachi Plant
On the 20th, at the LG Twin Towers in Yeouido, Yeongdeungpo-gu, Seoul, Nogukrae, Head of Petrochemical Business Division at LG Chem (right), and Jeong Chansu, CEO of GS EPS, signed the main contract for the establishment of a biomass joint power plant and took a commemorative photo. Photo by LG Chem
View original image[Asia Economy Reporter Donghoon Jung] LG Chem is partnering with eco-friendly energy company GS EPS to convert the energy heat source required for factory operations into sustainable biomass fuel.
On the 20th, LG Chem announced that executives from both companies, including Noh Guk-rae, Head of LG Chem's Petrochemical Business Division, and Jung Chan-soo, CEO of GS EPS, attended a signing ceremony at LG Twin Towers in Yeouido, Yeongdeungpo-gu, Seoul, to finalize the main contract for establishing a biomass power plant that produces industrial steam and electricity using waste wood. This contract follows the signing of a Heads of Agreement (HOA) on key terms by both companies in June.
LG Chem and GS EPS plan to invest a total of 320 billion KRW to establish the biomass power plant "Yeosu Green Power" at LG Chem's Hwachi Plant in Yeosu, aiming for operation in the first half of 2026.
The jointly established biomass power plant will use waste wood, which is incinerated or landfilled in domestic households and industrial sites, converted into woodchip form as raw material. Waste wood is recognized as sustainable biomass feedstock in both South Korea and the European Union (EU) as a non-recyclable resource rather than energy derived from forest resources.
GS EPS, the first private power generation company in South Korea, possesses accumulated business capabilities and operational know-how in eco-friendly energy and power generation, as well as a domestic woodchip supply network.
Yeosu Green Power is expected to produce steam (heat source) and electricity required for LG Chem's Hwachi Plant in Yeosu, achieving an annual carbon emission reduction effect equivalent to 400,000 tons. This is comparable to planting 2.8 million pine trees.
Both companies expect to contribute to accelerating carbon neutrality and establishing a circular economy by utilizing sustainable fuel. Additionally, the electricity produced at the power plant will be sold directly to LG Chem through a renewable energy Power Purchase Agreement (PPA).
Regarding this collaboration, Jung Chan-soo, CEO of GS EPS, stated, "Based on GS EPS's core competencies in eco-friendly energy, we will continue to cooperate with LG Chem, a leading domestic company driving net-zero."
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Noh Guk-rae, Head of LG Chem's Petrochemical Business Division, said, "This carbon reduction through biomass will be a key element for achieving carbon neutrality by 2030, along with major initiatives currently underway such as recycling and bio-materials. LG Chem will continue efforts to become a company leading eco-friendly innovation."
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