Skip to content
  • KOSPI 2746.63 +0.81 +0.03%
  • KOSDAQ 905.50 -4.55 -0.50%
  • KOSPI200 374.63 +1.41 +0.38%
  • USD/KRW 1347.5 -3.5 -0.26%
  • JPY100/KRW 890.53 -1.9 -0.21%
  • EUR/KRW 1453.14 -4.39 -0.3%
  • CNH/KRW 185.76 -0.27 -0.15%
View Market Snapshot
Biomaterials

LG Chem, Neste join forces to make bio-based synthetic resins

By Nov 05, 2020 (Gmt+09:00)

2 Min read

LG Chem Ltd. plans to produce synthetic resins such as polyolefin, polycarbonate and polyvinyl chloride, using biomaterials from Finland's diesel producer Neste Oyj next year, the South Korean company said on Nov. 5.

Under a preliminary agreement reached by the two companies, Neste will supply bio-based materials produced from vegetable oils, such as renewable waste cooking oil and palm oil, to LG Chem. Their partnership signals the Finnish company's diversification of its biofuel business into the petrochemical sector, according to LG.

It is also in line with LG Chem’s sustainability strategy, under which it plans to gradually increase the proportion of biomaterials in its production to achieve zero net emission growth by 2050. 

Using the biomaterials, LG Chem will produce polyolefin, superabsorbent polymer, high-value-added synthetic resin, polycarbonate and polyvinyl chloride. They will have the same physical properties as existing synthetic resins.
LG Chem, Neste join forces to make bio-based synthetic resins

LG is aiming to fully produce these product lines by the second half of next year.

“LG Chem will achieve its sustainability strategy ‘2050 Carbon Neutral Growth’ by expanding its resource virtuous cycle activities based on biomaterials and eco-friendly materials,” said Kug Lae Noh, president of LG Chem's petrochemicals business, in the statement. He was referring to the company's pledge to achieve its zero net carbon emission growth target by 2050.

Compared to fossil fuels, biomaterials are up to 50% more effective in reducing greenhouse gases, based on the same amount of input.

Neste is a leading company in the biodiesel field with its own proprietary process technology. Some 80% of its operating profit comes from biofuels and eco-friendly products.

“Neste will not only expand its biofuel business by diversifying its business portfolio into the petrochemical sector, but will also incorporate renewable bio-based materials into various high-value added products, based on LG Chem’s technology and vertically integrated business structure,” LG said.

Under their strategic partnership, the companies will seek to commercialize various products based on biomaterials and cooperate in new product development, as well as share information on markets in Asia, Europe and other global markets. Details about the supply quantity and duration of their tie-up were not disclosed.

LG Chem is also aiming to receive International Sustainability and Carbon Certification (ISCC) bio certification for eco-friendly resins produced from biomaterials by the first half of next year. The ISCC is an international certification organization consisting of 250 eco-friendly raw material manufacturers, trading companies, NGOs and research facilities, the company said.

Write to Jae-Kwang Ahn at ahnjk@hankyung.com
Yeonhee Kim edited this article.
Comment 0
0/300