LG Chem and GS EPS will cooperate in energy business to reduce carbon emissions by using biomass such as waste wood.
LG Chem announced that it had signed a "Heads of Agreement (HOA) for cooperation in biomass-based eco-friendly energy business" with GS EPS at the GS Tower in Yeoksam, Seoul on June 13.
With this agreement, the two companies plan to use renewable energy fuel made from wood chips in the form of wood waste from South Korean households and industrial sites.
With this agreement as an opportunity, the two companies will closely review the business feasibility of jointly establishing a biomass power plant that produces industrial steam and electricity from waste wood at the Yeosu plant of LG Chem by 2025.
In addition, the two companies are exploring various business opportunities in the eco-friendly energy field.
If the two companies establish a joint venture, LG Chem will be able to use biomass to produce the steam needed to operate petrochemical plants and complexes.
This is expected to reduce carbon emissions by about 400,000 tons per year. This is the same effect as planting 2.8 million pine trees.
