The business agreement between Plagen and the Korindo Group in Jakarta, Indonesia focuses on the supply of raw materials and investment for a clean methanol production project. This project marks Plagen’s 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 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.

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, and the demand for it is estimated to be 385 million tons by 2050, with Korea’s anticipated demand 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 of Plagen’s plans to increase its production capacity of clean methanol in the country. This move reflects an urgent need to secure stable production and import of clean methanol in Korea as it plays a crucial role in transitioning to net-zero emissions.