As part of its commitment to become the world leader in eco-friendly innovation, LG Chem has teamed up with the eco-friendly energy company GS EPS to convert heat sources, which are energy needed to operate plants, to biomass fuel. The duo plan to reduce 400,000 tons of carbon emissions annually using wood wastes as raw materials that would otherwise be incinerated.
LG Chem – GS EPS Partnership
As LG Chem partners GS EPS, the agreement between the two is a complete deal of the Heads of Agreement (HOA) that the two businesses inked in June of last year.
The main contract for building a biomass power plant that will use waste wood to generate electricity and steam for industrial use was signed today, January 20th, at the Yeouido LG Twin Tower in the presence of executives from both companies, including Petrochemicals Company President KUG LAE, NOH of LG Chem and CEO JUNG, CHAN-SOO of GS EPS.
Using Waste Wood to Operate Plants through Biomass Power Plant
With a total investment of 320 billion KRW, LG Chem and GS EPS will build the biomass power plant known as “Yeosu Green Power” at the LG Chem Hwachi Facility in Yeosu. The plant is expected to start operating in the first half of 2026.
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The biomass power plant that the two businesses are building together would transform waste wood from Korean homes and industrial locations, which is often burned or buried, into wood chips that can be utilized as raw materials. Waste wood is not considered to be using forest resources as energy since it is seen as a resource that cannot be recycled. As a result, it is acknowledged as sustainable biomass in both Korea and the European Union.
The first commercial power producer in Korea, GS EPS, has a network of local wood chip suppliers as well as collected business and operational expertise in the field of green energy and generators.
Reducing 400,000 Tons of Carbon Emissions Annually
Yeosu Green Power is anticipated to provide the steam (a heat source) and power required by LG Chem’s Yeosu Hwachi Plant, resulting in a 400,000-ton yearly reduction in carbon emissions. This equates to the 2.8 million pine trees planted.
By utilizing renewable fuels, the two businesses want to hasten the age of carbon neutrality and aid in the development of a circular economy.
Additionally, LG Chem will purchase the electricity generated by the power plant directly through the renewable energy PPA, Power Purchase Agreement.
Becoming the Lead Firm in Eco-friendly Innovation
Jung Chan-soo, GS EPS CEO, said they would keep working with LG Chem to achieve net zero in Korea. In his words:
On the other hand, LG Chem Petrochemicals Company President Kug Lae Noh commented that the company would continue its efforts to become a company that leads eco-friendly innovation.