Plagen has recently entered into a Memorandum of Understanding (MoU) with Hyojin E&HY and ReCarbon, aiming to significantly increase green methanol production at one of its upcoming plants. The collaboration will utilize plasma technology for the production of green methanol, with a projected annual output of 20,000 tons. Additionally, ReCarbon and Hyojin E&HY will employ water electrolysis technology to generate hydrogen.
The construction of the new plant is already in progress. Last year, Plagen inked an MoU with Kapsom, a company specializing in methanol synthesis technology. Furthermore, Plagen also secured a letter of intent from a prominent plastic manufacturer, ensuring the supply of green methanol. To secure the raw materials for production, the company signed an agreement with the Yangpyeong County Forestry Association in June 2023.
ReCarbon brings its expertise in operating pilot plants that convert carbon dioxide and methane into valuable resources like hydrogen and carbon monoxide. The company is expanding its efforts to produce clean fuels, including green methanol, green hydrogen, and low-carbon jet fuel. Notably, ReCarbon has successfully demonstrated syngas production from landfill gas in Tennessee, US, and is currently implementing a pilot plant in Australia to convert landfill gas into ethanol, in collaboration with Woodside Energy.
The plasma technology employed is based on a highly reactive state of matter achieved by applying energy to a gas. ReCarbon’s Plasma Carbon Conversion Unit (PCCU) effectively converts carbon dioxide and methane, known as greenhouse gases, into hydrogen and carbon monoxide, providing added value and enabling cost-efficient operations while producing carbon-neutral raw materials.
The move towards green methanol aligns with the International Maritime Organisation’s (IMO) target of achieving 100 percent net-zero carbon emissions in the shipping industry by 2050. This necessitates the transition from conventional non-carbon-neutral fuels to carbon-neutral alternatives, including green methanol.
The global demand for methanol is projected to exceed 500 million tons by 2050, with an estimated 385 million tons attributed to clean methanol demand. Currently, all of the domestic demand, which stands at 2.2 million tons, is met through imports. However, the market for clean methanol in the domestic sphere is expected to reach 500,000 tons by 2028.
The anticipated benefits of the 20,000-ton annual green methanol production plant are substantial, encompassing KRW 84 billion in production-induced effects, KRW 35 billion in value-added effects, and employment opportunities for 330 individuals. The project is set to bolster the local economy in Donghae City and contribute to the expansion and growth of the renewable energy market.
Moreover, this project serves as a vital commercialization example for the CCU business, showcasing how green methanol production can be scaled up by integrating biomass-based technology, plasma carbon conversion, and water electrolysis green hydrogen production methods. This integrated approach has the potential for significant impact in addressing the challenges of sustainable energy production and emission reduction.
