GS Engineering & Construction (GS E&C) is partnering with Desmet, a Belgian plant engineering company, to construct a hydrogenated vegetable oil (HVO) pre-treatment plant at LG Chem’s Daesan complex in Seosan, South Korea.
On April 3, Desmet announced it had signed a new contract with LG Chem and Italian energy giant Eni’s joint venture for the project. Under the agreement, Desmet will collaborate with GS E&C, the primary contractor, to deliver the facility.
The project involves building a facility capable of producing 340,000 tons of HVO annually. It’s part of a joint investment between LG Chem and Eni. GS E&C secured the contract in November last year, valued at approximately $497 million, with a construction timeline of around 32 months.
Once completed, the Daesan HVO plant will produce bio-naphtha and sustainable aviation fuel (SAF). Bio-naphtha is a key raw material for ethylene production, often referred to as the “rice of petrochemicals,” while SAF is targeted for global export. HVO, made by adding hydrogen to plant-based feedstocks like used cooking oil, is a next-generation biofuel known for its excellent cold-weather performance.
