August 27, 2025 [Argus Media]- South Korean renewable energy producer Biofriends has signed an initial agreement with South Korean biogas company Cheongmyeong on 22 August to build the country’s first commercial-scale biogas-based methanol plant, according to a press release by Biofriends.
The plant is expected to produce 60,000-80,000 t/yr of biomethanol using 120,000Nm³ of domestically produced biogas generated from Biofriend’s Gunsan biogas digester.
Biofriends plans to use its synthesis gas conversion technology to increase the added value of the domestic biogas and partake in the shipping industry’s low-carbon transition, especially given strengthening decarbonisation regulations by the International Maritime Organisation (IMO).
The biomethanol will initially be supplied to domestic methanol-powered vessels and is expected to enhance the competitiveness of the country’s shipping industry in line with the global trend towards a carbon-neutral shipping market and national greenhouse gas (GHG) reduction goals.
A portion of the produced biomethanol will also be converted to dimethyl ether (DME), which is still considered a clean fuel that emits minimal pollutants such as sulphur oxide and nitrogen oxide and significantly reduces CO2 emissions. The DME will be used as a LPG-DME blended fuel, which has similar physical properties to LPG, and will allow for the use of existing infrastructure. The blended fuel can significantly reduce carbon emissions and contribute to achieving South Korea’s carbon neutrality.
Some biomethanol bunkering activities are likely to occur at South Korea’s Ulsan port this year as Japanese shipping company NYK is expected to bunker its first biomethanol fuel at the port on its methanol-capable dry bulk carrier in September.
South Korea’s Taebaek city in 2024 also announced plans to build a 10,000 t/yr green methanol plant in collaboration with multiple companies using the government’s regional revitalisation investment fund. Argus could not confirm any new developments in this Taebaek city plan.
Stakeholders in this agreement include domestic clean energy firm Plagen, domestic automobile manufacturer Hyundai, utility Korea East-West Power, battery systems manufacturer Optimum Trading, Ssangyong Engineering and Construction, LF Energy, Hanbit Energy, S-Tech Korea and Infra Frontier Asset Management.
Green methanol can be used in fuel blending as a low-carbon liquid fuel and is derived from biomass or captured CO2 and green hydrogen, as compared to its natural gas-derived counterpart.
