Biofriends to build South Korea’s first biomethanol production plant

South Korea’s clean fuel producer Biofriends on Tuesday (26 August) said it signed a Memorandum of Understanding (MoU) with South Korea’s biogas company Cheongmyeong on 22 August to build Korea’s first commercial-scale biogas-based methanol production plant. 

This agreement is significant as it marked the starting point for the full-scale commercialisation of eco-friendly fuel production using domestically produced biogas.

Biofriends previously conducted a feasibility study on the possibility of producing from 45,000 tons to 100,000 tons per year. Based on this study, the company decided to build and operate a plant that will produce 60,000 to 80,000 tons of biomethanol per year, using 120,000 Nm³ of biogas generated daily from the biogas digester at its Gunsan plant as a raw material. 

The plan is to apply Biofriends’ synthesis gas conversion technology to increase the added value of domestic biogas while establishing a commercially stable, eco-friendly fuel supply chain.

These advantages are also driving the rise of biomethanol as a means of achieving a low-carbon transition in the shipping industry, particularly amidst the strengthening of decarbonization regulations by the International Maritime Organization (IMO).

The produced biomethanol will initially be supplied as an eco-friendly fuel for domestic methanol-powered vessels. This is expected to enhance the competitiveness of the domestic shipbuilding and shipping industries in line with the global trend toward carbon neutrality in the shipping market, while also contributing to the achievement of national greenhouse gas reduction goals.

Furthermore, a portion of the produced biomethanol will be converted to DME (Dimethyl ether) and used as a LPG-DME blended fuel. DME is considered a clean fuel that emits virtually no pollutants such as SOx and NOx and significantly reduces CO₂ emissions. Furthermore, its similar physical properties to LPG allow for the utilisation of existing infrastructure. When used as a blended fuel, it can significantly reduce carbon emissions and contribute to achieving Korea’s carbon neutrality.

Na Min-soo, CEO of Cheongmyeong, stated: “In line with the current administration’s key pledge to proactively address the climate crisis for future generations, we will continue to build biogas production facilities that recycle organic waste resources and transform into a specialized supplier of eco-friendly, renewable energy raw materials.”

Cho Won-jun, CEO of Biofriends, said: “The core of this project lies in the Carbon Capture & Utilization (CCU) process, which converts biogas methane (CH₄) and carbon dioxide (CO₂) together to create synthesis gas (syngas), which is then converted into methanol.” 

“This is a first in Korea to simultaneously utilise greenhouse gases to produce high-value-added clean fuel, and it is a technology that is competitive in the global market.

“The success of Korea’s first commercial-scale plant will go beyond mere technological verification and serve as an opportunity to create new markets. It will be a turning point for leading the decarbonization of the shipping and energy industries while simultaneously securing ESG values ​​and business growth.”

Photo credit: Biofriends
Published: 27 August, 2025