LG Chem and GS EPS invest €234.6m in South Korea biomass plant
The two companies signed a formal contract on 15 December, six months after they entered heads of agreement.
The biomass plant will be named "Yeosu Green Power" and it is planned to begin commercial operation in the first half of 2026.
The proposed power plant will process waste wood, a biomass fuel, collected from households and factories and turn it into woodchips, which will then be converted into steam and electricity.
The electricity generated from the Yeosu Green Power plant will be supplied to LG Chem’s Yeosu plant through a power purchase agreement.
GS EPS, a power supplier 70% owned by GS Holdings, will utilise its domestic woodchip supply network for the Yeosu project.
The companies expect the biomass plant to cut 400,000 tons of carbon emissions a year.
The signing ceremony was held at LG Twin Tower building in Yeouido, western Seoul, with No Guk-rae, head of LG Chem's petrochemical business, and GS EPS CEO Chung Chan-soo, in attendance.
“Carbon reduction using biomass fuel will be at the centre of our efforts to achieve carbon neutrality by 2030, along with other initiatives involving recycling and biomaterials,” said No.
“Based on GS EPS’s core capabilities in eco-friendly energy, we will continue to work with LG Chem, one of Korea’s leading companies in net-zero transformation,” said Chung.