The business agreement between Plagen and the Korindo Group in Jakarta, Indonesia is set to revolutionize the clean methanol market in Asia. This project marks Plagen’s first step into the industry and aims to produce 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, the partner company, operates locally in Balikpapan, East Kalimantan, Indonesia manufacturing 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.
With the International Maritime Organization’s goal of reducing carbon emissions by 100% (net-zero) around 2050 creating an urgent need for clean methanol-powered ships and secure methanol supply chain, it is expected that demand for clean methanol will reach 385 million tons globally by 2050. Korea is projected to have a demand of 230,000 tons of clean methanol in 2027 alone.
John Kyung stated that this initial production of 20,000 tons per year in Indonesia is just the beginning as they plan to increase production capacity in the country to meet growing demand. The need for stable production and import of clean methanol in Korea cannot be ignored given its significant role in transitioning to a low-carbon economy.