Building a reputation in green projects: DL E&C takes part in the Demeter project in the US

Named after the Olympian goddess of harvest and agriculture in Greek mythology, the Demeter project is a joint venture between LG Chem and Archer Daniels Midland (ADM), one of the world’s four major grain processing companies. DL E&C will also take part in the Demeter project, being in charge of the FEED (front-end engineering design) phase for the Poly Lactic Acid (PLA) plant that will be constructed with an annual capacity of 75,000 tons in Decatur, Illinois.

PLA: An Ecofriendly Alternative to Plastic

PLA is a biodegradable plastic made with lactic acid (LA) that is produced by fermenting and refining glucose extracted from corn. Made from safe, plant-based biomaterials, PLA is mainly used for food packaging containers, straws, tableware, water bottles, and tea bags as it can naturally decompose in several months by microorganisms under certain conditions. It requires less energy to produce than traditional petroleum-based plastics, leaving lower carbon footprint and making it a popular alternative plastic these days. Annual production from the new plant in Illinois is expected to be capable of producing PLA that equals the amount needed for manufacturing approximately 2.5 billion ecofriendly 500ml water bottles.

According to market research, the global bioplastic market is projected to grow by an annual average of 23% from KRW 12 trillion in 2021 to KRW 34 trillion in 2026. The key factors driving the market is increased demand from various industries, growing public awareness of the negative effects of plastic waste, and government initiatives that strengthen regulations on the use of disposable products worldwide. For example, Europe is currently implementing a ban on single-use plastic and acting against plastic pollution with various efforts being made to reduce plastic waste in line with its circular economy action plan. This, in turn, has triggered growing needs for ecofriendly plastic that can substitute PET. PLA is considered to be a great substitute as it is sustainable and can contribute to addressing climate change and plastic waste on both an individual and corporate level.

DL E&C is also looking forward to the plant-based solutions to tackle plastic waste and expedite the transition to a sustainable future. The Demeter project is another example of the company’s green business efforts in addition to recent moves into CCUS and carbon mineralization to curb emissions and protect the environment.

Globally Recognized Project Design Experience

Not only does the project bear environmental significance, but it is also a key project for realizing the client’s vision for sustainable growth as PLA is highlighted as a core biodegradable polymer business in addition to secondary batteries. DL E&C was able to take on this key project as the client recognized its outstanding project experience and use of cutting-edge technologies.

Meanwhile, DL E&C was also chosen for the project thanks to its track record working with Technip which is the licensor (in partnership with Sulzer and Futerro) for the key technology package used in the Demeter project. DL E&C successfully worked with Technip in similar projects such as the 2013 Jubail Export Refinery (JER) project in Saudi Arabia and the Yeochun NCC project in 2021. Moreover, the company was recognized for its success in the Saudi Arabia Kayan project that built a 65 KTA Poly Carbonate plant which shares similar key equipment and capacity with the Demeter project. For the Demeter project, DL E&C will provide the final FEED package and a total cost estimation to streamline project execution through feasibility analysis.

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DL E&C, Growing Presence in the US

The Demeter project is the most recent project DL E&C has won following a string of successful FEED agreements in the U.S. such as for the Golden Triangle Polymers Project located in Orange County, Texas, near the Louisiana border. For the Golden Triangle Polymers Project won last November, the company will be responsible for design and purchase of major equipment following basic design carried out to calculate the investment cost for the project that includes two high-density polyethylene units with a combined capacity of 2 million tonnes per annum (mtpa). DL E&C looks forward to growing its presence in the US market as these projects lay the groundwork for DL E&C to strengthen its position in the North American market.

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