PLAGEN, a South Korean green methanol production company, has signed an investment agreement with Taebaek City for the construction of a new facility in the city designed to produce 10,000 tonnes of green methanol per year. Under the agreement, PLAGEN plans to build the first commercial-scale green methanol plant in Korea, transforming Taebaek, which thrived as a coal mining city into a clean energy industrial hub.
The plant will be funded by the Regional Revitalisation Investment Fund and is set to commence construction in the first half of 2025. Operations are expected to begin in the second half of 2027.
The agreement involves several key stakeholders, including Taebaek City, PLAGEN, Korea East-West Power, Hyundai Corporation, Ssangyong E&C, Optimum Trading, Hanbit Energy, LF Energy, and Infrastructure Frontier Asset Management. The parties plan to collaborate on various aspects of the project, including the procurement of raw materials, the manufacturing and engineering, procurement, and construction (EPC) of the plant, as well as its operation and maintenance. Additionally, they will handle the purchasing of the produced green methanol, the procurement of carbon credits, and project financing.
With the closure of the coal mining industry in the city at the end of June, which once dominated the local economy, Taebaek faces the risk of urban decline. However, the city’s abundant forest residues and existing renewable energy infrastructure, including wind power, position it well for the development of green methanol. This shift towards green methanol production aligns with national goals for carbon neutrality and regional development. A feasibility study is underway by Korea’s Ministry of Economy and Finance at the site of Jangseong Mine in Taebaek City to study the construction of a 100,000 tons/year green methanol industrial complex and a 22,000 tons/year green methanol production plant. PLAGEN believes that with the government’s active support, the construction of the methanol production base will proceed smoothly.
The company said that the green methanol produced in Taebaek City will be supplied as fuel for ships on the US-Korea Green Shipping Corridor between Busan-Ulsan Port and Seattle-Tacoma Port, which is expected to start operations in 2027. The Korean government announced cooperation with the United States to build the world’s first trans-Pacific green shipping corridor at the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change in 2022.
“We expect to produce 100,000 tonnes/year of green methanol in Taebaek City by 2030, which is 20% of the domestic green methanol production target, contributing significantly to the revitalization of the local economy and national energy security,” said John Kyung, CEO of PLAGEN.
Specifically, Korea’s Ministry of Oceans and Fisheries aims to produce 500,000 tonnes/year of green methanol by 2030. However, at the moment there is no domestic green methanol production in Korea.
In 2020, Maersk’s former Chief Executive Officer (CEO), Søren Skou, firmly dismissed LNG (liquified natural gas) as a viable option for decarbonisation of its fleet. Citing its status as a fossil fuel, he expressed a preference to leap directly to carbon-neutral alternatives. This stance was underpinned by concerns over LNG’s methane “well-to-wake” emissions. At that time, Maersk placed its bets on (green) methanol, positioning it as the preferred fuel for a zero-carbon future.
South Korea achieved its first simultaneous ship-to-ship methanol bunkering at Busan New Port, supplying 3,000t to Maersk’s dual-fuel vessel, Antonia Maersk.
X-Press Feeders has cemented its position as the world’s largest common feeder operator, expanding its fleet by 21.8% since October 2023, says Alphaliner.
