With the recent rise of various environmental issues, alternatives to reduce our reliance on fossil fuels are being actively discussed. Among them, a new type of bio oil—extracted from plant-based materials and discarded resources—is drawing attention: HVO (Hydro-treated Vegetable Oil). This material, capable of replacing not only traditional diesel and aviation fuel but also basic petrochemical feedstocks, is gaining the spotlight for its eco-friendly nature and wide range of applications. In today’s FOCUS ON, we take a closer look at this next-generation bio oil, HVO, which helps reduce carbon emissions by substituting fossil fuels.

A new alternative raw material using plant-based resources: HVO

HVO (Hydro-treated Vegetable Oil) is an eco-friendly oil derived from vegetable-based resources. Unlike conventional biofuels, HVO is produced using inedible materials such as waste cooking oil and oil-extraction byproducts—thereby avoiding competition with food resources, a long-standing issue in the biofuel sector. As such, HVO holds particular significance from a circular economy perspective, where resources are reused instead of discarded. This makes it a promising and sustainable alternative to fossil-based raw materials.

While conventional biodiesel has faced limitations due to its oxygen-containing molecular structure—such as poor storage stability, lower fuel efficiency, and susceptibility to oxidation—HVO undergoes a hydrogenation process that removes oxygen, converting it into a pure hydrocarbon structure. This allows HVO to deliver combustion characteristics and fuel quality comparable to fossil fuels, while also producing fewer combustion byproducts, making it a more environmentally sound option.

Moreover, its low cloud point* allows it to remain unfrozen and maintain a stable flow even in cold environments. These properties make it suitable not only for general diesel applications but also for high-performance fuels such as SAF (Sustainable Aviation Fuel), which demand stability under extreme conditions like high temperatures and pressures.

Above all, HVO is recognized as more than just an eco-friendly alternative—it overcomes the inherent physical limitations of conventional biofuels. Its chemical structure closely resembles that of traditional naphtha**, allowing it to be applied in petrochemical processes. Building on this advantage, LG Chem has secured the technology to utilize HVO in the production of high-performance plastic materials. This proves the potential of HVO as a next-generation feedstock that enables eco-friendly transitions without the need to modify existing production lines.

*Cloud Point: The temperature at which a petroleum-based solution begins to appear cloudy – Phase separation may occur above this temperature.
**Naphtha: A basic petrochemical feedstock

An eco-friendly in-house system
integrating raw materials to final products

To ensure the stable application of HVO in real-world industries, securing a reliable supply of raw materials and internalizing the production process are critical. To this end, LG Chem is actively collaborating with domestic and global energy companies to advance the establishment of a fully localized HVO production system.

In 2021, LG Chem signed a Heads of Agreement (HOA) with DS Dansuk, a leading Korean biodiesel company, to establish Korea’s first joint venture for HVO production. Through this partnership with DS Dansuk—who possesses a stable supply chain based on waste cooking oil—LG Chem was able to strengthen their domestic resource procurement system.

Following this, in 2024, LG Chem signed a definitive agreement with ENI, Italy’s largest state-owned energy company, to establish a joint HVO production plant—further expanding their global collaboration. The two companies plan to complete the nation’s largest HVO facility by 2026 at LG Chem’s Daesan site in Chungnam, with an annual production capacity of 300,000 tons. Once completed, it will become Korea’s first fully integrated plant capable of producing HVO from raw materials to finished products, marking a significant milestone in the commercialization of HVO.

LG Chem plans to expand the use of HVO in the production of various plastic products, including SAP, ABS, and PVC. In parallel, the company has already secured more than 50 ISCC PLUS* international certifications for eco-friendly products based on bio-naphtha and other plant-based raw materials, thereby validating the sustainability and ESG compliance of their product portfolio. This goes beyond simply securing raw materials—demonstrating LG Chem’s in-house production capability to meet the growing sustainability demands of global customers.

*ISCC Plus: An international certification system recognized by the European Union (EU) that verifies the use of eco-friendly raw materials throughout the entire production process. As of 2024, LG Chem has obtained ISCC PLUS certification for approximately 61 products.

HVO production process:
from waste materials to eco-friendly certification

HVO is more than just an eco-friendly fuel — it marks the beginning of a new raw material system aimed at reducing carbon emissions. LG Chem is driving a fundamental transition by replacing fossil-based fuels with HVO derived from waste resources, and by reducing carbon emissions throughout the petrochemical production process.

To begin with, HVO is produced from renewable feedstocks such as waste cooking oil and inedible plant-based byproducts, which do not compete with food resources. It overcomes the long-standing issue of food resource competition often associated with conventional bio-based materials, while also being recognized for its sustainability from a resource-circulation perspective.

This feedstock first undergoes a hydrogenation process, during which oxygen is removed, and is converted into a pure hydrocarbon structure. Subsequent processing further improves fuel quality and stability, making it suitable for various applications such as diesel, aviation fuel, and naphtha. What is particularly noteworthy is that HVO consists solely of hydrocarbons without oxygen, allowing it to be directly used in existing petrochemical processes, such as NCC (Naphtha Cracking Center). Leveraging this property, LG Chem is able to stably produce eco-friendly plastic products with the same quality as conventional petrochemical-based products.

The products manufactured through this process not only achieve carbon reduction throughout the entire production cycle, but are also internationally certified for their sustainability and environmental contribution through ISCC PLUS. HVO has firmly established itself as a comprehensive eco-friendly solution—realizing environmental value through waste resource utilization, replacement of fossil-based feedstocks, carbon reduction, and international certification.

HVO: From Fuel Excellence to Everyday Material

With its excellent fuel properties, HVO can also be applied to the production of high-value-added plastic materials that are widely used in everyday life. For instance, SAP is used in hygiene products such as diapers and sanitary pads, ABS in automotive interior and exterior parts as well as electronic casings, and PVC in interior materials including pipes, window frames, and flooring.
Products made from HVO-based materials maintain the same quality as their fossil-based counterparts, while contributing to carbon reduction—making them a key enabler in the transition toward a more sustainable future.

LG Chem’s HVO is more than just a biofuel — it is emerging as a next-generation feedstock for petrochemical products. Its eco-friendliness, which can supplement conventional naphtha, and its versatility across a wide range of petrochemical processes are key advantages unique to HVO. By establishing an integrated production system that spans from raw materials to final products, LG Chem is further strengthening its competitiveness in the eco-friendly materials market. We invite you to stay tuned for the sustainable innovations HVO will bring to the petrochemical industry — and the future LG Chem’s technology is poised to create.