LG Chem and GS EPS have agreed to invest 320 billion won (US$247.3 million) to build a biomass plant at Yeosu Plant in South Jeolla.
The two companies signed the formal agreement on Tuesday, six months after signing the deal.
According to the plan, in the first half of 2026, the biomass plant named “Esu Green Energy” is planned to be used for commercial purposes.
The proposed power plant will process waste wood, a sustainable biomass fuel collected from households and factories, into sawdust, which is then converted into steam and electricity.
The electricity produced by the Yeosu Green Power Plant will be supplied to LG Chem’s Yeosu plant through a power purchase agreement.
Power supplier GS EPS, which is 70 percent owned by GS Holdings, will use its domestic woodchip supply network for the Yeosu project.
The companies expect the biomass plant to reduce carbon emissions by 400,000 tons per year.
The contract signing ceremony was held at the LG Twin Tower in Yeouido, west of Seoul, and was attended by No Guk Rae, head of petrochemicals at LG Chem, and Chung Chang-soo, CEO of GS EPS.
“Carbon reduction using biomass fuels will be at the center of our efforts to achieve carbon neutrality by 2030, along with other initiatives involving recycling and biomaterials,” said #1.
“Building on GS EPS’ core eco-friendly energy capabilities, we will continue to work with LG Chem, one of Korea’s leading companies in clean transformation,” said Chung.
BY SHIN HA [[email protected]]