A business agreement between Plagen and the Korindo Group in Jakarta, Indonesia has been reached, focusing on the procurement of raw materials and the investment of funds for a pure methanol production project. This marks Plagen’s first step into the pure methanol market in Asia and aims to produce 20,000 tons of pure methanol per year using biomass waste from Indonesian 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 manufactures various wood products 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 ships and safe methanol production, pure methanol is expected to play a significant role in this transition. With demand for it estimated at 385 million tons by 2050, with Korean demand expected to reach 230,000 tons in 2027.

John Kyung, managing director of Plagen stated that the initial production of 20,000 tons per year in Indonesia is just the beginning. With plans to increase the production capacity of pure methanol in the country. This reflects the urgent need to ensure stable production and import of pure methanol to Korea.

By Editor

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