LG Chem began construction of Korea’s first hydrotreated vegetable oil facility on Monday, betting on surging demand for alternative fuels as governments tighten environmental regulations worldwide.
The chemical giant’s joint venture with Italy’s Enilive broke ground on the ₩68.2 billion ($46 million) plant in Seosan, South Chungcheong Province. The facility, operated through LG ENI Biorefining, aims to produce 300,000 tons of HVO annually by 2027 while processing 400,000 tons of renewable feedstock.
Industry forecasts project global HVO demand will more than double from 23 million tons this year to 53 million tons by 2030, representing an 18% annual growth rate. The biofuel, produced by adding hydrogen to waste cooking oil and other plant-based materials, can reduce greenhouse gas emissions by up to 90% compared to fossil fuels.
The timing reflects intensifying pressure on companies to meet carbon reduction targets. HVO serves multiple applications including sustainable aviation fuel, biodiesel, and raw materials for petrochemicals — markets where regulatory mandates are driving adoption despite higher costs than conventional alternatives.
LG Chem plans to integrate HVO into its supply chain to expand its portfolio of certified bio-circular products, targeting applications in electronics, automotive components, and consumer goods. The strategy positions the company to capture premium pricing for sustainable materials while diversifying beyond traditional petrochemicals.
The plant will use Ecofining technology developed by Eni with Honeywell UOP, giving the joint venture access to proven processes already operating in Italy and the United States. For Enilive, the partnership provides entry into Asia’s growing biofuels market through an established local player with existing infrastructure.
Construction completion is scheduled for 2027, though the companies have not disclosed detailed timelines or potential production delays that could affect the ambitious capacity targets.
