Eni and LG Chem link to build South Korea's first Ecofining biorefinery by 2026

The sustainable mobility unit of Italy's Eni and South Korea's LG Chem have linked up to develop a biorefinery in South Korea, companies said in a statement on Sept. 14.

This potential biorefinery is expected to process approximately 400,000 mt of bio feedstocks annually using Eni's signature Ecofining process. The planned biorefinery aims to address the growing demand for such sustainable fuels and low-carbon plastics, transforming raw materials of biological origin into biofuel.

The plant will be flexible to produce multiple biofuels such as sustainable aviation fuel, hydrotreated vegetable oil and bio-naphtha.

Among sustainable feedstocks, the biorefinery will mainly work on waste and residues from the processing of vegetable oils, used cooking oil and vegetable oils from drought-resistant crops in degraded, semi-arid or abandoned soils not in competition with the food chain. This in turn will significantly reduce the land usage and carbon intensity of the plant, thereby making the project more eco-sustainable.

The final decision for investment in the new biorefinery is scheduled to be made by 2024, and plant completion is targeted in 2026 at LG Chem's existing integrated petrochemical complex in Daesan, southwest of Seoul.

When fully operational, the biorefinery is expected to have an annual output of nearly 300,000 mt, market sources said. The plant is primarily expected to produce HVO, a renewable biofuel that is obtained by hydrogenating materials such as used cooking oil. Unlike some biofuels, HVO remains fluid in low temperature, making it suitable for tangible applications such as transportation, aviation, and as a precursor for everyday products.

Wastes and residues are expected to be used for 13% of biofuel production in 2027, up from 9% in 2021, according to an International Energy Agency report. Renewable fuels made from wastes and residues are in particularly high demand becausethey satisfy greenhouse gas and feedstock sustainability policy objectives.

Eni's Ecofining footprint

Eni, which already operates two biorefineries in Italy, recently said it also wanted to develop plants in Asia and abroad. Eni's Sustainable Mobility unit plans to expand its bio-refining capacity from current position of 1.6 million mt/year to over 3 million mt /year by 2025 and over 5 million mt/year by 2030.

The company's Sustainable Mobility unit's patented Ecofining technology boasts of transforming biological origin raw materials of into biofuel or renewable diesel, known as HVO. The process is flexible, as it can use different types of feedstocks such as animal and vegetable residue fats from food industry and used cooking oils.

The technology was co-developed with American petroleum company Honeywell UOP. This technology has enabled Eni to convert two conventional refineries into bio-refineries, one in Venice and other in Gela. In June, Eni entered a joint venture with PBF Energy acquiring 50% interest of St. Bernard bio-refinery in Louisiana, US, for expansion on Ecofining-based technology.

Eni also launched several projects at the start of 2021, from the building of agri-hubs to the collection of used cooking oil and waste and residue. In addition to ramping up its bio-refining capacity, Eni is expanding farming ventures to secure feedstock supplies. The company has signed deals with several countries to identify degraded land where farmers cultivate feedstock crops that do not compete with the food supply chain.