In a significant step towards the production of clean methanol in Asia, Plagen and the Korindo Group in Jakarta, Indonesia have agreed on a business deal. This agreement focuses on the supply of raw materials and investment for a clean methanol production project. The project marks Plagen’s entry into the clean methanol market in Asia, with an annual production capacity of 20,000 tons using biomass waste from Indonesia’s forests.
The ceremony to mark this agreement was attended by Plagen CEO John Kyung, Vice President Won Sung-pil, BFI President Moon Jin-seok, and Director Kim Young-man. BFI, a partner company that operates locally in Balikpapan, East Kalimantan, Indonesia, manufactures various wood products and has been in operation for over 50 years with a focus on sustainable economic development, contribution to rainforest conservation, and carbon neutrality.
The International Maritime Organization’s goal of reducing carbon emissions by 100% (net-zero) around 2050 has created an urgent need for clean methanol-powered ships and secure methanol. Clean methanol is expected to play a significant role in this transition as it is considered to be one of the most promising alternatives to fossil fuels. With Korea’s anticipated demand at 230,000 tons in 2027 and global demand estimated at 385 million tons by 2050, this partnership between Plagen and Korindo Group is crucial for securing stable production and import of clean methanol in Korea.
John Kyung, CEO of Plagen stated that the initial production of 20,000 tons per year in Indonesia is just the beginning with plans to increase the production capacity of clean methanol in the country. This reflects the urgent need to secure stable production and import of clean methanol in Korea as it plays a critical role in reducing carbon emissions from shipping and promoting sustainable economic development globally.