LG Chem Begins e-SAF Pilot Under South Korea’s New CCU Mega-Project

South Korea’s Ministry of Science and ICT formally launched a public-private Carbon Capture and Utilisation (CCU) Mega-Project on 24 June, holding the kickoff at the Korea Institute of Energy Research in Daejeon. The programme runs from 2026 to 2030 with KRW 238 billion in public funding, and covers the conversion of CO₂ captured from power generation and steelmaking into aviation fuel, methanol, syngas, and marine fuel.

LG Chem is serving as lead organisation for the power-generation workstream. Its remit is to capture CO₂ from coal-fired power plants, react it with green hydrogen, and produce electro-Sustainable Aviation Fuel (e-SAF). Shim Gyu-seok, identified as LG Chem’s CTO, was quoted saying the company will advance CO₂-conversion technology to raise e-SAF production efficiency and strengthen its position in aviation decarbonisation. The source frames the initiative as LG Chem extending its petrochemical process and catalysis expertise into carbon-based feedstocks, reducing crude-oil dependency.

Regulatory pressure is building on both sides. South Korea plans to introduce a 1% SAF blending requirement for internationally departing flights from 2027, with the government having proposed raising this to 7–10% by 2035. The EU has set a 70% SAF blending goal by 2050, including a separate sub-quota for synthetic fuels. The source notes that today’s commercial SAF market is dominated by waste oils and animal fats, and that as mandates tighten, synthetic pathways such as e-SAF will become increasingly necessary given biological feedstock constraints. Remaining hurdles cited in the article include the high cost of green hydrogen, renewable electricity availability, ICAO lifecycle GHG accounting requirements, and the need to clear aviation fuel quality certification and supply-chain entry. The CCU Mega-Project’s supplementary budget for this year was raised from KRW 20 billion to KRW 42.4 billion, partly reflecting resource-security concerns linked to Middle East tensions; the Ministry of Science and ICT has projected that scaled CCU technology could substitute 10% of South Korea’s aviation fuel and 48% of its syngas supply by 2050.