Green diesel is gaining traction in South Korea as LG Chem builds the country’s first HVO facility in Seosan. The plant will produce 300,000 tons of green diesel annually. This major step supports Korea’s move toward clean energy. The facility will enhance domestic production and reduce reliance on imports.
LG Chem uses hydrogen to treat used cooking oil and break it into smaller, fuel-ready molecules. This process creates green diesel, which remains stable and performs well in cold conditions. Although it offers slightly less energy than petroleum diesel, it delivers up to 90 percent fewer carbon emissions. That environmental benefit makes it highly attractive for companies focused on sustainability.
In addition, LG Chem plans to use this fuel beyond cars and trucks. The company will convert it into bio-naphtha, which serves as a raw material for plastics. These plastics appear in electronics, automotive parts, sporting goods, and hygiene products. As demand grows for greener consumer goods, this expansion offers strong potential.
To strengthen the project, LG Chem formed a 50:50 joint venture with Italian energy firm Eni. Eni already produces millions of tons of HVO each year and operates a global supply chain. This partnership gives LG Chem critical expertise and better global market access. It also improves Korea’s competitiveness in renewable energy.
Previously, LG Chem imported most of its bio-based feedstocks. However, this new plant will create a steady domestic supply. That shift will reduce costs and stabilize long-term sourcing. As a result, the company gains more control over pricing and production timelines.
Meanwhile, industries worldwide are racing to secure cleaner raw materials. Governments continue to enforce stricter climate regulations. At the same time, customers are demanding more eco-conscious products. These changes are pushing companies to adopt renewable fuel sources like HVO.
Market analysts predict strong growth in the green diesel sector. Reports suggest the global market could grow from $21 billion to nearly $37 billion within several years. This trend reflects the urgency to shift away from fossil fuels. It also shows growing investor interest in sustainable energy assets.
LG Chem’s leadership sees green diesel as both a business and environmental opportunity. Executives expect cleaner fuels to increase revenue and build brand trust. Moreover, the company plans to scale this model across its chemical operations. That strategy may set the standard for other Korean manufacturers.
The Seosan project marks a turning point for Korea’s energy landscape. It shows how private industry can support climate goals while creating economic value. As the plant nears completion, more local and international investments may follow. Korea now stands ready to lead in green fuel development.
