In Jakarta, Indonesia, Plagen and the Korindo Group have reached a business agreement focused on the supply of raw materials and investment for a clean methanol production project. This project marks Plagen’s first entry 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 ceremony celebrating 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, contribution to rainforest conservation, 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 the demand for it estimated to be 385 million tons by 2050, with Korea anticipating a demand of 230,000 tons in 2027.
John Kyung, CEO of Plagen stated that the initial production of 20,000 tons per year in Indonesia is just the beginning and plans are underway to increase the production capacity of clean methanol in the country. This reflects the urgent need to secure stable production and import of clean methanol in Korea.