Sustainability is no longer a choice – it’s a necessity. In the worldwide pursuit of carbon neutrality, interest in eco-friendly fuels is accelerating. Now, Korea has embarked on its first step toward realizing that change.

In July 2025, LG Chem broke ground on an eco-friendly bio-oil plant, the first in Korea to produce HVO (Hydrotreated Vegetable Oil) by adding hydrogen to renewable vegetable oils such as waste cooking oil.

In December 2024, the company signed an agreement with Italy’s energy company ENI to establish a joint HVO plant, officially launching the project. The two partners have formed a joint venture, ‘LG Eni BioRefining,’ and selected Seosan, Korea, as the site for production. ENI is one of Europe’s largest integrated energy companies, operating an HVO production facility in Italy with an annual capacity of 2 million tons. With ENI’s advanced refining technology and a global supply chain for eco-friendly raw materials spanning Europe, Africa, and Asia, this partnership is expected to generate strong synergies in both technology and resources.

LG Chem’s HVO plant, currently under construction, is expected to have an annual production capacity of 300,000 tons by 2027. Once completed, the company will begin full-scale production of eco-friendly fuels using vegetable raw materials such as waste cooking oil. More than just the construction of a new facility, this project is anticipated to mark a turning point in Korea’s sustainable fuel industry.

Why the HVO Plant is a Game Changer

LG Chem’s HVO plant represents more than just a production facility. It is Korea’s first dedicated HVO plant to produce eco-friendly fuel from renewable resources such as waste cooking oil and plant byproducts. The facility is drawing attention from both the aviation and petrochemical industries, and is being recognized as a significant milestone in the transition of the industry’s structure.

This plant will be Korea’s first integrated facility capable of handling the entire process—from pre-processing of raw materials to the production of finished HVO. Until now, the country has lacked a commercial HVO production base and has relied heavily on imports for biofuels and naphtha substitute feedstocks. With the new plant, LG Chem will establish proprietary production capabilities and gain major advantages in raw material supply stability and product quality management. In other words, it marks the creation of Korea’s first eco-friendly fuel supply chain that is resilient to external factors.

In particular, the plant’s potential in the aviation industry is drawing strong attention. As global pressure mounts to reduce carbon emissions in aviation, SAF (Sustainable Aviation Fuel) is emerging as a key solution. This facility will provide Korea with a stable supply of high-quality HVO suitable for SAF production and serve as a strategic base for future entry into the global SAF market.

HVO can also support the transition of feedstocks in the petrochemical industry, offering a flexible framework that enables a shift to eco-friendly materials while maintaining existing production lines. Building on this technological foundation, LG Chem plans to accelerate the sustainable transformation of high-value-added plastics such as SAP, ABS, and PVC.

In short, the construction of this HVO plant goes beyond expanding eco-friendly fuel production. It serves as a catalyst for accelerating the sustainable transformation of Korea’s chemical industry. Spanning resources, technology, and products, it establishes a comprehensive eco-friendly system in Korea and marks a significant turning point for the nation’s chemical sector.

What kind of material is HVO?

While traditional biodiesel has a molecular structure containing oxygen, which limits storage stability and fuel efficiency, HVO is converted through hydrogenation into a pure hydrocarbon structure with oxygen removed, delivering superior performance in terms of properties, fuel efficiency, and stability.

HVO is recognized as a high-quality fuel suitable not only for standard diesel vehicles but also for use in extreme conditions. In particular, it is considered an ideal feedstock for SAF. HVO-based SAF is compatible with conventional aviation oil and is drawing attention in the global aviation industry as a means of reducing carbon emissions, thanks to its low freezing point and high combustion efficiency.

Furthermore, HVO has a chemical structure similar to naphtha, allowing it to be fed directly into petrochemical processes such as NCC. This enables the replacement of naphtha-based petrochemical operations with bio-based alternatives, offering broad applications in the production of eco-friendly plastic materials.

As such, HVO is recognized as a key resource at the forefront of the sustainable industrial transition, offering high versatility and scalability in both fuel and material applications.

With the groundbreaking of its HVO plant, LG Chem is accelerating their expansion into the eco-friendly energy sector. This project is significant in that it marks a shift away from the traditional petroleum-based business structure toward preparing for the future with sustainable technologies and materials. It is not merely a facility expansion, but a strategic step to establish a new pillar of growth.

Building on the HVO production, LG Chem plans to expand their eco-friendly product portfolio across diverse sectors, including aviation fuel and chemical materials. This is expected to have a positive impact on reducing carbon emissions across Korea’s industrial landscape.

Driven by ‘sustainability,’ resources, processes, and products are undergoing major transformation. Building on the company’s technology and collaboration, LG Chem will continue to lead this change and pursue their journey toward creating a better tomorrow.