LG Chem has announced that it has signed a Letter of Intent (LOI) with GS EPS, South Korea's leading green energy supplier, to collaborate on a biomass-based eco-friendly energy project.
Attended by key stakeholders including LG Chem's petrochemical business head Noh Kug-lae, GS EPS CEO Chung Chan-soo, among others, the agreement is a key component of LG Chem's strategy to ensure a more sustainable future by converting its energy sources to sustain-able fuels to reduce its carbon emissions.
"The partnership enables LG Chem to expand our foothold in the renewable energy market to achieve our net zero commitment," said Noh of LG Chem. "Accelerating Net Zero transition across all aspect of the corporate value chain will enable us to more quickly establish a circular economy utilizing renewable and sustainable fuels."
"Leveraging GS EPS's core competencies in renewable energy such as biomass power, we will work closely with partners such as LG Chem to help them achieve their commitment toward Net Zero," said Chung of GS EPS.
Under the agreement, both partners will review their business strategies toward constructing a joint biomass power plant at Yeosu Complex on the southern coast of Korea to produce industrial steam and electricity with waste woods by 2025.
The agreement also includes cooperating on the establishment of a Power Purchase Agreement (PPA) for renewable energy in collaboration with Korea Power Exchange, the agency under the Ministry of Trade, Industry and Energy responsible for the nation's electric power system. In addition, the companies agreed to work closely on seeking out various business opportunities in the renewable energy sector to strengthen their competitiveness in the global market.
Should the joint venture be established, LG Chem will have the capability to produce steam from biomass to run its petrochemical operations within the Yeosu Complex. The company expects to see significant carbon emission reduction of more than 400,000 metric tons per year, which is equivalent to planting 2.8 million new pine trees.