LG Chem teams up with US company to expand bioplastic global business
Mi-sun Kang
Apr 13, 2023 (Gmt+09:00)
LG Chem's eco-friendly product lineup brand under LETZero LG Chem Ltd. has partnered with a US-based biofuel company Gevo to expand its bio-material-based plastic business.
The company announced on Thursday that it has signed a joint development agreement (JDA) with Gevo to commercialize bio-propylene.
With this agreement, LG Chem will receive the technology from Gevo to produce propylene from bio-ethanol.
LG Chem plans to commercialize bio-propylene through joint research and development with Gevo and plant building. The company plans to complete commercialization by 2026.
Gevo is an eco-friendly energy company that possesses core technology for producing sustainable aviation fuel and bio-plastics from various plant-based materials. While technology that produces ethylene from bio-ethanol fermented from corn and sugarcane is already commercialized, technology for producing bio-propylene is being commercialized for the first time.
LG Chem can supply 100% bio-based products to customers who make flooring, diapers and automotive interior and exterior materials once bio-propylene is developed.
It is expected to reduce more than 90% of carbon emissions compared to existing products during the production process.
According to Nova-Institute, a global market research firm, the production of bio-material-based plastics is expected to grow by an average of 14% per year, reaching 4.5 million tons by 2027.
"We will continue to expand our sustainable and eco-friendly business by strengthening our business portfolio based on bio-materials," said Noh Kook-rae, head of LG Chem's petrochemical business.