In a ceremony attended by Plagen CEO John Kyung, Vice President Won Sung-pil, BFI President Moon Jin-seok, and Director Kim Young-man, the business agreement between Plagen and the Korindo Group in Jakarta, Indonesia was announced. This agreement focuses on the supply of raw materials and investment for a clean methanol production project. With this project, Plagen is taking its first step into the clean methanol market in Asia and aims to produce 20,000 tons of clean methanol annually using biomass waste from Indonesia’s forests.
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, with the demand for it estimated to be 385 million tons by 2050. Korea’s anticipated demand for clean methanol is 230,000 tons in 2027 alone.
John Kyung, CEO of Plagen, stated that this initial production capacity of 20,000 tons per year in Indonesia is just the beginning and that plans are underway to increase it further. This reflects the urgent need to secure stable production and import of clean methanol in Korea. The partnership between Plagen and BFI will help contribute to sustainable economic development while also promoting rainforest conservation efforts.