LG Chem and Enilive, Eni’s Sustainable Mobility company, have moved a step further in making a final investment decision on the project of a new biorefinery in South Korea by signing the joint venture (JV) agreement.

The project was first announced in September of last year, when Enilive and LG Chem revealed their plans to develop and operate a biorefinery at LG Chem’s existing integrated petrochemical complex in Daesan, South Korea.The goal is to have the biorefinery up and running by 2026, with a capacity to process around 400,000 tons of renewable bio-feedstocks per year.

The project will utilize Eni’s Ecofining™ technology, and the biorefinery will produce a variety of products, including Sustainable Aviation Fuel (SAF), Hydrotreated Vegetable Oil (HVO), and bio-naphtha.

“Biofuel production is one of the main pillars of our strategy to contribute to reaching net zero emissions by 2050, as well as through the sale of increasingly decarbonized products to our clients. The biorefinery project we are working on together with LG Chem is a key element to expanding Enilive’s biorefining presence internationally, to raise its capacity from the current 1.65 million tons per year to over 5 million tons per year by 2030, and to increase the optionality of SAF production to up to 2 million tons per year from 2030,” said Eni CEO Claudio Descalzi.

The two companies will combine their expertise to make this project a success, with the final investment decision expected to be made in 2024.

“This agreement holds significant meaning as it represents the collaboration and joint effort of global leading companies towards the common goal of ‘Net Zero’,” said LG Chem CEO Shin Hak-cheol.

“LG Chem will actively support the successful execution of this project and, moving forward, will solidify its position as a leading company in the eco-friendly plastic industry, achieving sustainable development and carbon neutrality as a true global entity,” he added.