The agreement signing was attended by key stakeholders including LG Chem’s petrochemical business head Noh Kug-lae, GS EPS CEO Chung Chan-soo, amongst others. The agreement is a key component of LG Chem’s strategy to ensure a more sustainable future by converting its energy sources to sustainable fuels to reduce its carbon emissions.
Noh Kug-lae said “The partnership enables LG Chem to expand our foothold in the renewable energy market to achieve our net zero commitment. Accelerating Net Zero transitions across all aspects of the corporate value chain will enable us to more quickly establish a circular economy utilising renewable and sustainable fuels.”
Chung Chan-soo of GS EPS said: “Leveraging GS EPS’s core competencies in renewable energy such as biomass power, we will work closely with partners such as LG Chem to help them achieve their commitment toward Net Zero.”
As part of the agreement, both companies will review their business strategies toward constructing a joint biomass power plant at Yeosu Complex on the southern coast of Korea, which would produce industrial steam and electricity by using waste wood by 2025.
The agreement also includes cooperating on the establishment of a Power Purchase Agreement (PPA) for renewable energy in collaboration with Korea Power Exchange, the agency under the Ministry of Trade, Industry and Energy responsible for the nation’s electric power system. In addition, the companies agreed to work closely on seeking out various business opportunities in the renewable energy sector to strengthen their competitiveness in the global market.
If the companies decide to go through with the joint venture, LG Chem will be able to produce steam from biomass to run its petrochemical operations within the Yeosu Complex. According to the company, this would result in a significant carbon emission reduction of more than 400,000 metric tons per year, which is equivalent to planting 2.8 million new pine trees.