The clean methanol production project between Plagen and the Korindo Group in Jakarta, Indonesia is focused on supplying raw materials and investing in funds for the project. This marks Plagen’s first entry into the Asian clean methanol market, with a goal of producing 20,000 tons of clean methanol annually 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 operating 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 and carbon neutrality.

With the International Maritime Organization aiming to reduce carbon emissions by 100% (net-zero) around 2050, there is an urgent need for clean methanol-powered ships and secure methanol supply. Clean methanol is expected to play a crucial role in this transition, with an estimated demand of 385 million tons by 2050 worldwide. Korea’s anticipated demand is at 230,000 tons in 2027 alone.

John Kyung stated that the initial production capacity of 20,000 tons per year in Indonesia is only the beginning of Plagen’s plans to increase its production capacity for clean methanol in the country. This reflects the critical need to secure stable production and import of clean methanol in Korea.