GS Caltex and LG Chem sign MOU for joint biodegradable business

GS Caltex CEO Hur Sae-hong, right, and LG Chem CEO Shin Hak-cheol pose for a photo during a signing ceremony Friday at LG Chem’s R&D Campus in Gangseo District, western Seoul. [GS CALTEX]

GS Caltex and LG Chem agreed on a joint biomaterial business for the world’s first commercial production of next-generation biodegradable plastic feedstock.

The two companies signed a memorandum of understanding (MOU) on Friday at LG Chem’s R&D Campus in Gangseo District, Western Seoul, with GS Caltex CEO Hur Sae-hong and LG Chem CEO Shin Hak-cheol in attendance.

The deal follows a joint development agreement (JDA) between the two companies in 2021 and the recent completion of a pilot plant for 3-hydroxypropionic acid (3HP), a plant-based feedstock for biodegradable plastics and other environment-friendly materials.

The plant, located at GS Caltex’s Yeosu plant in South Jeolla, will begin production of prototype 3HP within the first quarter of next year. GS Caltex and LG Chem expect the prototype production to be a step into the world's first commercialization of 3HP products.

Under the latest MOU, GS Caltex and LG Chem will discuss possible joint businesses utilizing 3HP, such as establishing a joint venture.

Made with plant-derived materials through microbial fermentation, 3HP is a versatile platform chemical that can produce bio acrylic acid for diapers, adhesives, coatings and carbon fibers.

The chemical is widely considered a promising alternative to petroleum-based single-use plastics due to its biodegradability and flexibility.

In a release, the companies said that GS Caltex’s separation and purification technology and process scale-up capabilities, and LG Chem’s 3HP fermentation technology enabled the joint project.

“With the cooperation between the two companies for the development of environmentally friendly materials, we will bolster our ESG [environmental, social and governance] capabilities and generate commercial value by commercializing high-value-added products,” said GS Caltex’s Hur.

LG Chem’s Shin said the company will “continue to take the lead in the field of environmentally friendly technologies, which will contribute to achieving net-zero emissions by 2050, through the partnership with GS Caltex.”

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