South Korea to construct ‘first’ commercial biomethanol production site

August 28, 2025, by Sara Kosmajac

South Korean clean fuel and renewable energy production company Biofriends and compatriot K-biogas manufacturer Cheongmyeong have penned a memorandum of understanding (MoU) to construct the nation’s ‘first’ commercial-scale biogas-based methanol production plant.

The deal, which was signed on August 22, is said to signal the starting point for a full-scale commercialization of environmentally friendly fuel production utilizing biogas produced domestically.

As disclosed, the manufactured biomethanol is planned to be initially supplied as an eco-friendly fuel for South Korea’s methanol-powered vessels.

This is anticipated to improve the competitiveness of the country’s shipbuilding market while also contributing to national greenhouse gas (GHG) reduction targets. It is worth noting that South Korea is the world’s second-largest shipbuilder, right after China.

Moreover, according to Biofriends, a portion of the biomethanol is to be converted to dimethyl ether (DME) and used as an LPG-DME blended fuel. DME is seen as a clean energy source that emits practically zero pollutants like sulfur oxides (SOx) and nitrogen oxides (NOx). It also ‘significantly’ slashes carbon dioxide (CO2) emissions.

In addition to this, DME’s properties, which are similar to liquefied petroleum gas, make it a suitable option to use with the existing infrastructure. Officials from Biofriends have shared that as a blended fuel, DME can cut down on even more carbon emissions and, in doing so, further aid South Korea’s carbon neutrality-oriented targets.

The plan to build the production site is reportedly the result of a feasibility study that Biofriends conducted, with the vision of ensuring a manufacturing capacity from 45,000 tons to 100,000 tons per year.

As explained, based on this study, the company chose to construct and operate a plant that will produce 60,000 to 80,000 tons of biomethanol annually, using 120,000 Nm³ of biogas generated daily from the digester at the Gunsan plant as a raw material.

To accomplish this, the two project partners intend to apply Biofriends’ synthesis gas conversion technology as a way to ‘boost’ the added value of domestic biogas.

“The core of this project lies in the Carbon Capture & Utilization process, which converts biogas methane (CH₄) and carbon dioxide together to create synthesis gas, which is then converted into methanol. This is a first in Korea to simultaneously utilize greenhouse gases to produce high-value-added clean fuel, and it is a technology that is competitive in the global market,” Cho Won-jun, CEO of Biofriends, elaborated.

With the maritime industry sailing toward net zero, energy sources like biomethanol have increasingly been seen as a ‘promising’ mid-to-long-term solution for decarbonizing shipping, particularly given its potential to reduce NOx and SOx emissions and particulate matter, compared to conventional fuels.

As understood, the usage of biomethanol is also practical as the fuel tends to be easier to handle and store than other alternative fuels, such as hydrogen or ammonia.

In this sense, as representatives from Biofriends and Cheongmyeong have also highlighted, biomethanol could prove to be an important link in the energy transition chain, both in South Korea and beyond, especially amidst the strengthening of environmental regulations as set by the International Maritime Organization IMO).

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