Gevo and LG Chem Join Forces, Achieving 90% Carbon Reduction Breakthrough

North American sustainable fuel company Gevo and LG Chem announced on January 2 that they have decided to extend their existing joint development agreement. Under this agreement, both parties will continue to utilize Gevo's Ethanol-to-Olefins (ETO) technology to jointly develop bio-based propylene for renewable chemicals.

Bio-based propylene is primarily used to produce bio-based polypropylene (PP), which has the potential to replace traditional fossil-based products. Once commercialized, bio-based propylene can serve as a direct substitute widely used in automotive interiors and exteriors, flooring, and plastic products such as diapers, in order to achieve low or negative carbon footprint environmental goals.

Currently, there are three main developmental pathways for bio-based propylene. Due to the earlier economic transformations and promotion of environmental policies in Europe and the U.S., foreign chemical giants have conducted considerable exploration in this field. The specific details are as follows:

1. Bioethanol to Propylene: This method typically involves converting bioethanol made from fermented corn, sugarcane, and other raw materials into olefins. For example, LG Chem signed a joint research and development agreement with Gevo in April 2023, with Gevo responsible for providing the technology to manufacture propylene from bioethanol, while LG Chem aims to provide 100% bio-based products through joint research and plant construction, which is expected to reduce carbon emissions by over 90% compared to existing products. Lummus Technology is currently the only provider of all mature, low-energy technologies for producing renewable green polypropylene from bioethanol, having launched its first world-class bio-based polypropylene project in 2023.
2. Bio-Propane Dehydrogenation: Neste, a global renewable energy giant, has developed NEXBT technology for producing bio-propane and partnered with Nordic Chemical as early as 2019, marking the first industrial-scale case of renewable propane dehydrogenation in history.
3. Bio-Isopropanol Dehydration: Mitsui Chemicals has reported developing a technology to produce isopropanol (IPA) using inedible plants, which is then dehydrated to obtain the propylene monomer. On March 3, 2022, Mitsui Chemicals announced that its subsidiary Prime Polymer Co., Ltd. became Japan's first company to commercially produce bio-based polypropylene. Nonetheless, the propylene used may also be derived from 100% bio-based hydrocarbons produced by Neste.

Additionally, Zhongyuan Petrochemical launched its bio-based polyolefin project in October 2023, successfully producing qualified products by early September 2024, with the first batch reaching 2,500 tons, marking the birth of the first domestic bio-based polyolefin product. In September of this year, Sinopec Huazhong actively promoted it, with 13 clients participating in trials, and several expressed purchasing intentions, successfully placing the first order, achieving a breakthrough in bio-based polyethylene products.