LG Chem, CJ CheilJedang to launch eco-friendly bio-nylon joint venture

South Korea’s top chemicals maker LG Chem Ltd. and food and biotechnology firm CJ CheilJedang Corp. have agreed to launch an eco-friendly bio-nylon joint venture to create a new revenue source and cut carbon emissions, said Kedglobal.

The two companies said on Thursday that LG Chem Chief Executive Shin Hak-cheol and CJ CheilJedang CEO Choi Eun-seok have signed a head of agreement (HOA) to build a JV plant to produce eco-friendly nylon based on bio-materials, called PMDA, which are produced by fermenting corn, sugarcane and other crops.

Once up and running, the JV will be Korea’s first bio-nylon project to produce both raw materials and finished products, according to LG.

Under the agreement, CJ will produce PMDA with its microbial precision fermentation technology while LG will polymerize or combine raw materials to produce bio-nylon, also known as bio-polyamide, and sell products.

LG said bio-nylon produced from bio-based materials has the same heat resistance and durability as petroleum-based nylon, making it ideal for use in a wide range of products, including textiles, automobiles and electronic devices, while also significantly reducing carbon emissions.

We remind, LG Chem Ltd. striving to become a leading global battery materials player broke ground on its first-ever cathode plant in the US, expected to be the biggest of its kind in the world’s third-largest EV market.

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South Korea’s CJ CheilJedang Corp. announced on Tuesday that it has developed a packaging material using biodegradable material polyhydroxyalkanoates (PHAs), said Kedglobal.

PHA is a polymer that accumulates in microorganisms and decomposes in most environments, including soil and oceans.

CJ CheilJedang created the packaging material using only biodegradable materials like PHA, eliminating the use of polyvinyl chloride (PVC) commonly used in traditional plastic packaging.

The new packaging material exhibits similar properties to regular plastic and is durable and suitable for shipping packages, even for heavy or sharp-edged items.

Additionally, it has been recognized for its opacity, ensuring the contents are not visible, and its adhesive property, preventing shipping labels from coming off.

CJ Olive Young has introduced this packaging for its same-day delivery service “Dream Delivery Today.”

Currently, it's being used in two logistics centers in Gyeonggi Province for nearby Onul Drim deliveries, with plans for potential expansion being considered.

We remind, Korean food giant CJ CheilJedang Corp. is seeing major success with its "K-Street Food" line, a selection of iconic Korean street snacks with global appeal. In May last year, the company’s brand Bibigo named six foods to its K-Street Food lineup: tteokbokki, South Korean-style corn dogs, gimbap (seaweed roll), gimmari, bungeobbang (fish-shaped snack filled with red bean paste) and hotteok (sweet pancakes).

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Malaysia's biodiesel production could rise to 1.8 MMt in 2024 if the government expands its 20% biodiesel mandatory program to more areas in the country, said Hydrocarbonprocessing.

Malaysia has rolled out a B20 program, where diesel for transportation must be blended with 20% palm-based biodiesel, in phases with most areas in the nation currently implementing 10% blending or a B10 program for the transportation sector.

"We can get (several blending) facilities up and running faster, then we obviously can go into B20 then," MBA president U.R. Unnithan told Reuters in an interview, adding that nationwide implementation would take more time and cost.

Unnithan said the group has submitted the recommendation to the government and hope expansion of the program could be done in the second half of this year, however further discussions with other stakeholders is needed before a decision is made.

Malaysia launched a nationwide mandatory 20% palm-based biodiesel blending for the transportation sector in 2020, however the program has only been implemented in some areas as the COVID-19 pandemic and multiple changes of government in recent years hampered progress.

The government has considered expanding its B10 biodiesel program, which requires the mandatory use of 10% palm oil, to the industrial sector and has a mandate to use biodiesel with 30% palm oil by 2025.

The Southeast Asian country exported nearly 300,000 tons of biodiesel last year, while around 1.1 million tons was consumed domestically.

Unnithan, however, cautioned that the government's intention to review price controls and fuel subsidies could hurt domestic demand for biodiesel.

We remind, Lotte Chemical Corp. announced on Monday its commencement of commercial production at the plant of Hydroxy Ethyl Cellulose (product name: Hecellose) in Yeosu, South Jeolla Province earlier this month. In December last year, Lotte Chemical constructed the Hecellose production facility on its Yeosu development site, specializing in Lotte Fine Chemical Co. 's key specialty product, Hecellose.

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The memorandum of understanding between CIP and LOTTE is intended to support collaboration on clean ammonia projects, said Hydrocarbonprocessing.

As part of the agreement, the two companies agree to discuss and finalize agreements for the supply, purchase, and sale of blue ammonia to LOTTE from CIP’s St. Charles Project in Louisiana, U.S., and green ammonia from CIP’s Murchison Project in Australia.

CIP and LOTTE also agree to initiate discussions regarding development of and investment in low carbon ammonia projects on a global basis. The two companies also intend to discuss potential collaboration on projects in infrastructure bunkering and other sectors in connection with low carbon ammonia.

CEO & Head of Hydrogen Business Group of LOTTE Chemical Corporation JinKoo Hwang said, “We are delighted to cooperate with CIP, a global leader in greenfield renewable energy investments. With the Korean government’s strong policy support on energy transition, Korea will be the fastest growing market for clean hydrogen and ammonia. We will take lead in providing sustainable clean ammonia by utilizing the strengths and expertise of both companies.”

CIP Partner Soren Toftgaard said, “We believe blue and green ammonia will co-exist for many years, as we gradually transition from fossil-based production. And we continue to see significant opportunities for both in the U.S., Europe, and Asia. We are proud of the new partnership with LOTTE on ammonia projects development and offtake to Korea and consider it an important step that could open further opportunities for our Energy Transition Fund.”

Blue ammonia is a low-carbon approach which combines traditional ammonia synthesis using natural gas with subsequent carbon capture and storage and could significantly accelerate the energy transition while green ammonia production at scale is becoming more mature.

We remind, Lotte Chemical Corp. announced that it has established artificial intelligence (AI) organizations tailored to the characteristics of its basic materials and advanced materials businesses to strengthen data-based research.

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Plastics Recyclers Europe (PRE), the representative body for European plastics recyclers, has raised significant concerns regarding the escalating imports of recycled plastic, citing potential threats to the EU industry, said Chemanalyst.

The organization, dedicated to championing the role of recyclers in fostering plastic circularity and transitioning towards a circular economy, has identified a pronounced destabilization in the European plastics recycling sector throughout 2023.

The primary driver of this destabilization stems from the mounting influx of recycled plastics into the EU, resulting in an imbalanced market and profound environmental repercussions. Furthermore, PRE asserts that these imports contribute to the EU's deindustrialization while undermining the environmental objectives outlined in the European Green Deal. The organization contends that the stability of the sector is compromised by these imported materials, exacerbated by a decline in EU competitiveness and the absence of a level playing field.

PRE underscores the European Commission's Packaging and Packaging Waste Regulation (PPWR) as a key instrument designed to enhance circularity and effectively address waste within the EU. However, the organization raises concerns about the potential for non-EU plastic waste to contribute to EU targets without robust control mechanisms, posing a threat to the market.

PRE points to a recent issue brief derived from an analysis of the circular polyethylene terephthalate (PET) and polyester system, which highlights the possible repercussions on Europe's recycling systems, cautioning that if investments in EU recycling systems are reduced or stopped, greenhouse gas emissions could more than double by 2040. Such a scenario could lead to an increased incineration of waste rather than recycling, with a consequential drop in the PET recycling rate by 2040, threatening the competitiveness of the European industry. The PET recycling rate is estimated to decline to a range of 32% to 38% by 2040, a stark contrast to the 67% projected in the circular scenario.

In response to these challenges, PRE is urging the EU's institutions to implement safeguards that would provide support to the industry and facilitate the transition to a circular economy. Recognizing the urgency of the situation, the organization advocates for proactive measures to counteract the destabilizing effects of increased recycled plastic imports.

As part of their advocacy efforts, PRE released a new manifesto in December 2023, calling on the EU to enact necessary changes and policies to achieve what they term as 'genuine' plastics circularity. The manifesto serves as a comprehensive blueprint, outlining the specific adjustments and policy initiatives required to address the challenges posed by the rising imports of recycled plastics and safeguard the long-term sustainability of the European plastics recycling industry. Through this manifesto, PRE aims to mobilize stakeholders and decision-makers towards collectively adopting measures that ensure the responsible and sustainable management of plastic waste within the EU.

We remind, polyethylene Terephthalate (PET) price experiences a contradictory trend for the US and European market during early March 2024. In the US market, PET price remained stable during the first week of March 2024, due to the balanced supply chain and uninterrupted operation while market took a growth of around 4.5% in February 2024, attributed to the significant factors from feedstock shortage and logistics interruption.

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