(Alliance News) - Eni Spa's LG Chem and Enilive announced Friday the signing of a joint venture agreement that represents another step toward a final investment decision for a new biorefinery project in South Korea.

The agreement was signed in Rome by Eni CEO Claudio Descalzi and LG Chem CEO Shin Hak-cheol.

Last September, Enilive-a company in which Eni holds a 100 percent stake-and LG Chem announced that they had begun evaluation for the development and operation of a new biorefinery at LG Chem's petrochemical site in Daesan, South Korea.

The goal is to complete the plant by 2026 and process about 400,000 tons/year of biogenic feedstock using Eni's Ecofining technology to make available various products including Sustainable Aviation Fuel, HVO diesel biofuel, and bio-naphtha. LG Chem and Eni will combine their respective expertise in this project. The final investment decision is expected by 2024.

Claudio Descalzi, CEO of Eni, said, "Biofuel production is one of the pillars of our strategy to help achieve full carbon neutrality by 2050, including through the sale of progressively decarbonized products. The biorefinery project we are working on together with LG Chem is a key project to expand Enilive's presence in biorefining internationally, to increase its capacity from the current 1.65 million tons/year to more than 5 million tons/year by 2030, and to increase the optionality of SAF production to 2 million tons/year from 2030."

Shin Hak-cheol, CEO of LG Chem, commented, "This agreement has important significance because it represents the spirit of cooperation and joint effort of leading global companies toward the common goal of Net Zero. LG Chem will contribute to the realization of this project and, in the future perspective, consolidate its position as a leading eco-friendly plastic company, achieving sustainable development and carbon neutrality as a true global company."

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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