MOSCOW (MRC) -- LG Chem will team up with the eco-friendly energy company GS EPS to convert heat sources into biomass fuel, said Businesskorea.
The company announced on Dec. 20 that the two companies signed the main contract for establishing a biomass power plant that will produce industry-use steam and electricity using waste wood at the Yeouido LG Twin Tower with the attendance of executives from both companies. This agreement follows up the conclusion of the heads of agreement (HOA) signed by the two companies in June of last year.
LG Chem and GS EPS will establish the biomass power plant called “Yeosu Green Power” by investing a total of 320 billion won at the LG Chem Hwachi Plant in Yeosu with the goal of beginning operations by the first half of 2026.
The biomass power plant will turn waste wood from homes and industrial sites in Korea, which are usually incinerated or buried, into the form of woodchips to be used as raw materials. As waste wood is treated as a resource that cannot be recycled, power generation using it is not viewed as using forest resources as energy. Therefore, it is recognized as sustainable biomass.
GS EPS is Korea’s first private power producer, and it possesses accumulated business capacity and operational know-how in the eco-friendly energy and generator sector, as well as a domestic woodchip supply chain network.
Yeosu Green Power is expected to produce steam (heat source) and electricity needed for LG Chem’s Yeosu Hwachi Plant, thereby reducing carbon emissions by 400,000 tons annually. This is equivalent to planting 2.8 million pine trees.
The two companies anticipate that this will accelerate the age of carbon neutrality by using sustainable fuels and contribute to constructing a circular economy.
Also, the electricity produced by the power plant will be sold directly to LG Chem through the renewable energy power purchase agreement (PPA).
Regarding this cooperation, GS EPS CEO Jung Chan-soo said, “We will continue our partnership with LG Chem, which is the leading company for net-zero in Korea based on the core eco-friendly energy capacities of GS EPS.”
LG Chem Petrochemicals Company President Noh Kug-lae commented, “Carbon reductions through this biomass will become a key element for achieving 2030 carbon neutrality together with major initiatives currently being promoted such as recycling, biomaterials, etc.," while adding, “LG Chem will continue its efforts to become a company that leads eco-friendly innovation.”
We remind, with the launch of its eco-friendly, highly functional bio-based ABS, LG Chem has added a further product to its growing portfolio of LetZero materials. LetZero is the brand name under which the company has brought its range of sustainable materials together, and includes PCR made of reprocessed waste plastics, renewably-sourced biomaterials, and biodegradable materials made of glucose and waste glycerol extracted from corn.