LG Chem, GS EPS to invest 320 billion won to build biomass plant in Yeosu

Chung Chan-soo, left, GS EPS CEO, and No Guk-rae, head of LG Chem's petrochemical business, pose for a photo during a signing ceremony held Tuesday at LG Twin Tower in western Seoul. [LG CHEM]

LG Chem and GS EPS will jointly invest 320 billion won ($247.3 million) to build a biomass plant at its Yeosu plant in South Jeolla.

The two companies signed a formal contract on Tuesday, six months after they entered heads of agreement.

The plan is to begin commercial operation of the biomass plant, named “Yeosu Green Power,” in the first half of 2026.

The proposed power plant will process waste wood, a sustainable biomass fuel, collected from households and factories and turn it into woodchips, which will then be turned into steam and electricity.

The electricity generated from the Yeosu Green Power plant will be supplied to LG Chem’s Yeosu plant through a power purchase agreement.

GS EPS, a power supplier 70 percent owned by GS Holdings, will utilize its domestic woodchip supply network for the Yeosu project.

The companies expect the biomass plant will cut 400,000 tons of carbon emissions a year.

The signing ceremony was held at LG Twin Tower building in Yeouido, western Seoul, with No Guk-rae, head of LG Chem's petrochemical business, and GS EPS CEO Chung Chan-soo, in attendance.

“Carbon reduction using biomass fuel will be at the center of our efforts to achieve carbon neutrality by 2030, along with other initiatives involving recycling and biomaterials,” said No.

“Based on GS EPS’s core capabilities in eco-friendly energy, we will continue to work with LG Chem, one of Korea’s leading companies in net-zero transformation,” said Chung.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]