Sim Kyu-seok (third from left), Executive Vice President and Chief Technology Officer (CTO) of LG Chem, and Kim No-ma (first from left), Director of the Foundation Technology Research Institute, pose for a photo at the “CO₂ Capture and Utilization (CCU) Technology Demonstration and CCU Mega Project Launch Briefing” held at the Korea Institute of Energy Research. Photo courtesy of LG Chem
LG Chem (051910.KS) is moving to secure technology that uses carbon dioxide as a resource to produce sustainable aviation fuel (e-SAF).
LG Chem said Friday that it will pursue a technology demonstration project to convert carbon dioxide into sustainable aviation fuel as part of the “Carbon Capture and Utilization (CCU) Mega Project” promoted by the Ministry of Science and ICT (MSIT).
LG Chem will participate as the lead managing organization in the project, joined by Hyundai Engineering & Construction, LT Metal, and ProCon Engineering, along with the Korea Institute of Science and Technology (KIST), the Institute for Advanced Engineering, the Korea Institute of Energy Research, the Korea Petroleum Quality & Distribution Authority, UNIST, Kunsan National University, and South Chungcheong Province. The project will run from 2026 to 2030.
LG Chem plans to demonstrate technology that reacts captured carbon dioxide with eco-friendly hydrogen (green hydrogen) to synthesize fuel, then converts it into sustainable aviation fuel through additional refining and upgrading processes.
Sustainable aviation fuel is a next-generation eco-friendly fuel that can significantly reduce carbon emissions compared with conventional fossil fuel-based jet fuel. It is drawing attention as a key technology for achieving global carbon neutrality.
Major countries are currently accelerating efforts to expand the use of sustainable aviation fuel. The European Union (EU) plans to expand the sustainable aviation fuel blending ratio to 70% by 2050, of which 35% will be synthetic fuel. The United Kingdom has also set a target of 28.2% by 2040, including 4.5% synthetic fuel. Singapore, Japan, and India are also expanding adoption in stages.
In Korea, a 1% sustainable aviation fuel blending mandate will begin in 2027 and is set to expand to a level of 7-10% by 2035. Accordingly, the technology being pursued by LG Chem is evaluated as a key technology not only for realizing carbon neutrality but also for gaining an early lead in the global eco-friendly fuel market.
“CCU technology is a key carbon-neutral technology that converts carbon dioxide into a new resource,” said Shim Kyu-seok, LG Chem’s chief technology officer (CTO). “Through the advancement of CO2 conversion technology, we will improve the production efficiency of sustainable aviation fuel and continuously strengthen our competitiveness in carbon reduction technology for the aviation sector.”