In a business agreement between Plagen and the Korindo Group in Jakarta, Indonesia, the focus is on supplying raw materials and investing funds for a clean methanol production project. This marks Plagen’s first entry into the clean methanol market in Asia, with an aim to produce 20,000 tons of clean methanol annually using biomass waste from Indonesia’s forests.
The ceremony marking 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 and has been in operation for over 50 years with a focus on sustainable economic development 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 and the demand for it is estimated to be 385 million tons by 2050, with Korea anticipated to require 230,000 tons in 2027.
John Kyung stated that the initial production of 20,000 tons per year in Indonesia is just the beginning for Plagen as they have plans to increase their production capacity of clean methanol in the country. This reflects the urgent need to secure stable production and import of clean methanol in Korea.