LG Chem to Expand Bio-Plastics with US Zibo

Eco-friendly material products applied with LG Chem's eco-friendly brand 'LETZero'. Photo by LG Chem

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LG Chem is expanding its plastics business based on bio-based raw materials.

On the 13th, LG Chem announced that it signed a joint research and development agreement with Gevo, a North American eco-friendly fuel specialist, to commercialize bio-propylene by 2026. Gevo will provide technology to produce propylene from bio-ethanol, and LG Chem will proceed with commercialization through joint R&D and plant construction.

Gevo is an eco-friendly energy company that holds core technologies necessary for producing sustainable aviation fuel (SAF) and bioplastics from various plant-based raw materials.

Currently, technology to produce ethylene from bio-ethanol fermented from corn, sugarcane, and other sources has been commercialized, but this is the first time that ETO (Ethanol to Olefin) technology to produce bio-propylene is being commercialized. Ethylene is a raw material for PE, PVC, etc., mainly used in packaging and construction materials. Propylene is a raw material for PP, alcohols, etc., used in automotive interior and exterior materials, flooring, diapers, and more.

Once bio-propylene is developed, LG Chem will be able to supply 100% bio-based products to customers manufacturing flooring, diapers, automotive interior and exterior materials, and more. Additionally, a carbon reduction effect of over 90% compared to existing products is expected.

The production scale of bio-based plastics this year is 4.5 million tons, with an expected average annual growth rate of 14% until 2027 (according to data from Nova Institute, a global market research organization).

Paul D. Bloom, Chief Carbon Innovation Officer (CCIO) of Gevo, stated, "Through the partnership with LG Chem, we will accelerate the eco-friendly raw material business to reduce carbon emissions."

Noh Guk-rae, Head of Petrochemical Business Division at LG Chem, said, "We will continue to expand sustainable eco-friendly businesses by strengthening our business portfolio centered on bio-based raw materials."

Meanwhile, to strengthen its eco-friendly business focus, LG Chem has started construction of a pyrolysis oil plant in Dangjin, Chungnam Province, and is concentrating on carbon neutrality and resource circulation activities by supplying raw materials for eco-friendly remote controls, set-top boxes, and other products using recycled plastics.

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