South Korea’s LG Chem Ltd., parent to world’s No. 2 electric vehicle battery maker LG Energy Solution Ltd., has partnered with a U.S.-based biofuel company Gevo Inc. to expand its bio-material-based plastic business.

LG Chem announced on Thursday that it has signed a joint development agreement with Gevo to commercialize bio-based propylene.

With this agreement, the chemical company will receive technology to produce propylene from bio-ethanol from Gevo. LG Chem also plans to commercialize bio-propylene with Gevo through joint research and development as well as establish production base. The company plans to complete the commercialization by 2026.

“We will continue to expand our sustainable and eco-friendly business by strengthening our business portfolio based on biomaterials,” said Noh Kook-rae, head of petrochemical business division at LG Chem.

According to Nova-Institute, a global market research firm, the production of bio-material-based plastics is expected to reach 4.5 million tons this year and grow by an annual average of 14 percent by 2027.

Gevo is an eco-friendly energy company that possesses core technology for producing sustainable aviation fuel and bioplastics from various plant-based materials.

Currently, the technology that produces ethylene from bio-ethanol fermented from corn and sugarcane is already commercialized, but technology to produce bio-propylene is being commercialized for the first time.

Once bio-propylene is developed, LG Chem can supply 100 percent bio-based products to customers who make flooring, diapers and automotive interior and exterior materials. It is expected to reduce more than 90 percent of carbon emissions during the production process compared with existing products.

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]