LG Chem Ltd. and GS Caltex, both based in Seoul, South Korea, have broken ground on a pilot plant to develop a white-bio ecosystem and commercialize bio-raw materials. They announced their joint development agreement last year.
The groundbreaking ceremony at GS Caltex’s Yeosu plant was attended by LG Chem’s CEO Hak Cheol Shin, GS Caltex’s CEO Se-hong Heo, Yeosu-si’s mayor Ki Myung Cheong, and R&D personnel from both companies. The upcoming pilot plant will produce prototypes of 3HP (3-Hydroxypropionic acid), a crucial material for eco-friendly products like biodegradable plastics.
3HP is a biomaterial produced through an eco-friendly fermentation process and serves as the base material for acrylic acid, acrylonitrile, and biodegradable materials. From personal hygiene products to lightweight materials for electric vehicles, 3HP has extensive applications. Last November, the two companies signed a Joint Development Agreement (JDA) to develop mass-production technology for 3HP and produce prototypes.
In 2023, both companies aim to establish a 3HP pilot plant at GS Caltex’s Yeosu plant to produce prototypes. Subsequently, they will speed up market entry into biodegradable materials and various bioplastics through commercialization.
The construction of the pilot plant is significant because LG Chem’s fermentation source technology and GS Caltex’s separation and purification process scale-up technology will create synergistic effects, kickstarting a high-value eco-friendly biochemical business. Globally, there have been attempts to develop 3HP technology, but no cases of commercialization.
In addition to 3HP, LG Chem and GS Caltex signed an MOU to develop 1,4-Butanediol (BDO) technology, which is used as an eco-friendly raw material to produce biodegradables and polyurethane. Through this agreement, the two companies will collaborate in the overall white bio sector and actively discuss measures to realize a sustainable bio ecosystem.
Furthermore, Yeosu-si, LG Chem, and GS Caltex signed a trilateral MOU for the development of Korea’s white bio industry and the promotion of carbon neutrality and a circular economy. Yeosu-si pledged to provide comprehensive administrative support for the demonstration project, and the two companies committed to prioritize Yeosu-si as a site for future factory construction in commercialization efforts.
Meanwhile, LG Chem exclusively owns the world’s best 3HP fermentation technology. In October 2020, the company successfully developed PLH (Poly Lactate 3-Hydroxypropionate), the world’s first biodegradable material capable of achieving mechanical properties equivalent to synthetic resins.
In July 2019, LG Chem achieved commercial production of eco-friendly PCR white ABS for the first time globally. The company plans to commercialize PBAT (Polybutylene Adipate-co-Terephthalate) and PLA (Poly Lactic Acid) by 2024 and 2025, respectively.
Furthermore, LG Chem intends to implement a decarbonization strategy throughout its supply chain, including 100% renewable energy conversion, LCA (Life Cycle Assessment) performance, responsible resource procurement policy management, and carbon dioxide conversion technology development, aiming to achieve ‘Net Zero by 2050.’