The business agreement is focused on the supply of raw materials and the inevestment of funds for the clean methanol production project at the Korindo Group in Jakarta, Indonesia.
The ceremony was attended by Plagan CEO John Kyung, Vice President Won Sung-pil, BFI President Moon Jin-seok, and Director Kim Young-man.
Through this project, Plagen plans to take its first step into the clean methanol market in Asia. The two companies will produce 20,000 tons of clean methanol annually using biomass waste from Indonesia's abundant forests as raw materials and introduce it into the country.
BFI is engaged in the manufacturing of various wood products on its 30 hectares of land in Balikpapan, East Kalimantan, Indonesia. The company has been operating locally for more than 50 years with the goal of sustainable economic development and growth, contributing to rainforest conservation and carbon neutrality.
According to the shipping industry, the International Maritime Organisation (IMO) has recently set a goal of reducing carbon emissions by 100 percent (net-zero) around 2050, creating an urgent need to build clean methanol-powered ships and secure methanol.
The estimated demand for methanol in 2050 is more than 500 million tons, of which clean methanol is estimated to be 385 million tons.
The expected demand for clean methanol in Korea is expected to be 230,000 tons in 2027, and there is an urgent need to secure stable production and import of clean methanol in Korea.
“Starting with the production of 20,000 tons per year in Indonesia, we will increase our production capacity of clean methanol in Indonesia” said John Kyung, CEO of Plagen.
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