In Jakarta, Indonesia, Plagen and the Korindo Group have agreed on a business deal that involves the supply of raw materials and investment for a clean methanol production project. This marks Plagen’s first entry into the clean methanol market in Asia, with the aim of producing 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, manufactures various wood products 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, with demand estimated to be 385 million tons by 2050. Korea’s anticipated demand is at 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. The company plans to increase production capacity for clean methanol in the country as there is an urgent need to secure stable production and import of clean methanol in Korea.