LG Chem breaks ground on plastic recycling, aerogel plants

LG Chem's production plant in Seosan, South Chungcehong [LG CHEM]

LG Chem broke ground for its 310-billion-won ($237.5 million) plastic recycling and aerogel plants in Dangjin, South Chungcheong, Thursday.

The plastic recycling facility will produce 20,000 tons of pyrolysis oil per year, if completed. Commercial operations are scheduled to begin next year.

The pyrolysis oil extracted from plastic waste will be used as feedstock for petrochemical products such as synthetic resin, according to LG Chem.

Pyrolysis oil has been mostly used as fuels, instead of petrochemicals feedstock, due to impurities. LG Chem will adopt a technology to remove impurities from the pyrolysis oil in collaboration with Mura Technology, a British company, in its pyrolysis facility.

As the plastic pyrolysis is expected to grow 19 percent every year on average until 2030, local companies such as SK Innovation, GS Caltex and Hyundai Oilbank have also entered the pyrolysis recycling business.

“As the petrochemicals industry is entering the era of green transformation, plastic waste is in the limelight, deemed as an alternative for petroleum,” said Joo Young-joon, Deputy Minister for Industrial Policy.

“Using pyrolysis oil for petrochemicals manufacturing is an innovative, and an eco-friendly move, replacing imported crude and naphtha with discarded plastic and therefore creating value from it,” said Joo.

LG Chem will also build an aerogel production facility at the Dangjin plant.

Aerogel, known as a next-generation material, is a class of low-density solid gel where the liquid has been replaced with gas or air. It has been explored in a range of applications including catalysis, thermal insulators, solar energy uses, sensors and photocatalysis.

The groundbreaking ceremony was attended by Deputy Minister Joo, LG Chem CEO Shin Hak-cheol, Dangjin Mayor Oh Seong-hwan and Mura Technology CEO Steve Mahon.

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