City signs multilateral MOU with domestic and international firms, shipping lines
Taebaek aims to build clean methanol industry and production-to-demand ecosystem
Taebaek, the Gangwon Province city that once powered South Korea's economic rise as the country's sole domestic coal producer, is now transforming into a clean methanol industrial hub.
Taebaek said Thursday it had signed a multilateral MOU with Eco Methanol, Hyundai Corporation, global shipping company Wallenius Wilhelmsen (WW) and Eukor Car Carriers to develop the city's clean methanol industry and build a production, logistics and demand ecosystem.
The agreement links the clean methanol project — a key alternative industry under Taebaek's economic revitalization drive — not only to production but also to distribution, logistics and actual end-users, creating a full industrial ecosystem.
Under the MOU, the five institutions and companies agreed to cooperate across four areas: production, with Eco Methanol building clean methanol production infrastructure in Taebaek; distribution and logistics, establishing clean marine fuel bunkering and maritime logistics networks in partnership with global shipping firms including WW and Eukor Car Carriers; demand, with Hyundai Corporation reviewing the adoption of domestically produced clean fuel as part of its transition to an eco-friendly logistics ecosystem; and administration, with Taebaek providing support on securing project sites, obtaining permits and coordinating with the central government.
Interest in and demand for clean methanol in the global eco-friendly marine fuel market have been growing as the International Maritime Organization (IMO) and the EU significantly tighten carbon regulations on the shipping sector starting in 2028.
The agreement lays the groundwork for producing clean methanol domestically and connecting that output to real demand in the shipping and logistics sectors. It is expected to help secure a domestic production base for marine fuel — currently sourced entirely from abroad — and, by building an industrial ecosystem spanning production through logistics and demand, contribute to both carbon neutrality goals and the stability of the national energy supply chain.
With the Jangseong Mine set for early closure under national policy, bringing the coal industry that long underpinned the local economy to an end, Taebaek is working to establish a new growth foundation by fostering clean methanol and other alternative industries.
The agreement is expected to accelerate the city's industrial transition — from a coal-producing town to one that produces and supplies future clean energy — by building a cooperative framework that brings together producers and domestic and international logistics and demand companies.
Building on the agreement, Taebaek plans to continue urging the central government to support early market creation, including the prompt handover of former mine sites to enable timely private investment through project financing, and the introduction of a temporary carbon contracts for difference (CCfD) scheme to bridge the price gap for clean methanol.
Taebaek Mayor Lee Sang-ho said the MOU marks "a historic inflection point as Taebaek moves beyond the age of coal and into the age of clean energy." He added: "With private companies that have the production technology, demand and logistics infrastructure all believing in Taebaek's potential and joining us, Taebaek will lead the way and make this project the first successful model of South Korea's 'just transition' from coal."
abc@heraldcorp.com
