GS Caltex and LG Chem signs Thurs. JDA for mass production of eco-friendly raw materials (LG Chem)
Energy company GS Caltex and leading chemical firm LG Chem are jointly developing technology to mass produce eco-friendly raw materials, the firms announced Thursday.
The top officials of the two companies met at LG Science Park in Seoul to sign a joint development agreement aimed at developing and mass producing a biodegradable plastic material called 3HP (Hydroxypropionic acid).
3HP is an eco-friendly substance produced through microbial fermentation of glucose and amorphous glycerol.
It is also evaluated as a next generation platform chemical that can not only be used to make bio-degradable plastic but also diverse materials such as super absorbent polymers and coating material used to make diapers.
LG Chem possesses world-leading 3HP fermentation technology and GS Caltex has advanced processing facilities.
The joint agreement comes as GS Caltex and LG Chem found common interest in commercializing 3HP.
The two companies plan to jump into the bio degradable material and bio plastic market by mass producing 3HP by 2023.
Market watchers say the global bioplastic market is to see an annual average growth of 23 percent, jumping up to 34 trillion won ($28.79b) in 2026 from 12 trillion won in 2021.
“The two companies, through cooperation in the development of eco-friendly raw materials, will strengthen ESG capabilities by contributing to the net economy and carbon reduction while creating economic value through high value-added products,“ said GS Caltex President Huh Se-hong.
LG Chem CEO Shin Hak-cheol said “We will lead future technologies that can protect the environment and society by focusing on research and development of eco-friendly materials.”
By Hong Yoo (email@example.com