LG Chem said Thursday that its naphtha cracking center located in Yeosu, South Jeolla Province, was ranked the world’s No. 1 plant in energy efficiency in a U.S. research project.
In a survey conducted by consulting firm Solomon Associates on 115 firms, the country’s biggest chemicals maker was noted for using 40 percent less energy in ethylene production at its center in Yeosu than its competitors. This move saves energy worth 300 billion won ($280 million) every year, according to LG Chem officials.
The NCC has facilities to pyrolyze naphtha ― in which heavy organic compounds are broken down into smaller, lighter ones ― to produce petrochemical feedstock such as ethylene and propylene.
“Energy saving is important for not only cost reduction, but also for dealing with carbon regulations such as the emissions trading system,” said the company’s chief executive Park Jin-soo. “We will continue to make improvements in the process to introduce the most energy-efficient option in 2014.”
Obtaining energy efficiency is critical for chemical makers because energy-related costs make up more than 60 percent of the total manufacturing costs at the NCC.
In Korea, LG Chem has two NCCs in Yeosu and Daesan, South Chungcheong Province.
Its rivals Samsung Total, Lotte Chemical and SK Global Chemical also have their own facilities.
By Cho Ji-hyun (
sharon@heraldcorp.com)
