The signing of the agreement took place in the presence of key stakeholders, including the head of the petrochemical business of LG Chem, Noh Kug-lae, the CEO of GS EPS, Chung Chan-soo, and others. This is a key part of LG Chem’s strategy to ensure a more sustainable future by converting its energy sources to sustainable fuels to reduce its carbon emissions.
“The partnership enables LG Chem to expand our presence in the renewable energy market to achieve our net zero commitment,” said LG Chem’s Noh. “Accelerating the Net Zero transition across all aspects of the business value chain will allow us to more quickly establish a circular economy using renewable and sustainable fuels.”
“Leveraging GS EPS’ core competencies in renewable energy such as biomass energy, we will work closely with partners such as LG Chem to help them achieve their commitment to Net Zero,” said Chung from GS EPS.
As part of the agreement, the two companies will review their business strategies for the construction of a joint biomass power plant at the Yeosu complex on the south coast of Korea, which would produce steam and industrial electricity using wood waste by 2025.
According to BioEnergy News, “The agreement also includes cooperation on establishing a power purchase agreement (PPA) for renewable energy in conjunction with Korea Power Exchange, the agency of the Ministry of Commerce, ‘Industry and Energy’ responsible for the country’s power supply system. In addition, the companies agreed to work closely together to seek various business opportunities in the renewable energy sector to enhance their competitiveness in the global market. “.
If the companies decide to go ahead with the joint venture, LG Chem will be able to generate steam from biomass to run its petrochemical operations within the Yeosu complex. According to the company. This would result in a significant reduction in carbon emissions of over 400,000 metric tons per year, which is equivalent to planting 2.8 million new pines.