[Edaily Reporter Shin Ha-yeon] #JC Chemical, a company specializing in eco-friendly biofuels, announced on the 15th that it is the only domestic biofuel company to directly own palm oil plantations in Indonesia and has established a vertically integrated system spanning from raw material production to palm oil extraction and the manufacturing of biodiesel and bio-heavy oil.

JC Chemical secured a local palm plantation base by acquiring the Indonesian palm plantation company PT. Niagamas Gemilang in 2012, followed by the additional acquisition of PT. SUKSES BINA ALAM in 2013.

Since profitability in the biofuel business hinges on raw material prices and securing a stable supply chain, the company has built competitiveness to respond to fluctuations in the raw material market by directly operating palm oil plantations.

Recently, as Indonesian palm oil plantations have entered their peak production period—the so-called “golden age”—performance in the plantation sector has also improved. The company’s Indonesian palm oil subsidiary recorded sales of 22.4 billion won and an operating profit of 2.8 billion won in the first quarter of this year. The operating profit margin stands at 12.5%.

The Indonesian government’s policy to expand biofuels is also cited as a factor contributing to improved profitability. The Indonesian government has been steadily increasing the blend ratio of palm oil in biodiesel and recently decided to introduce the “B50 policy”—which raises the palm oil blend ratio to 50%—ahead of schedule in response to energy supply instability.

The company expects that the introduction of B50 will increase annual palm oil demand by approximately 28.6% compared to current levels, and anticipates that JC Chemical, which owns palm plantations, will benefit significantly from this trend.

Currently, JC Chemical owns a 7,300-hectare palm oil plantation in Indonesia, an area approximately 30 times the size of Yeouido. The company plans to enhance the profitability of its plantation business by developing the PT.PPP palm oil plantation acquired in 2024 and strengthening the operational competitiveness of its existing CPO mill.

The expansion of the next-generation biofuel market is also cited as a growth driver. As the global energy market expands beyond conventional biodiesel to include HVO (hydrogenated vegetable oil) and SAF (sustainable aviation fuel), the importance of raw material procurement capabilities and pretreatment technology is growing.

Building on its existing biofuel production experience, JC Chemical is pursuing new businesses such as PTU (pre-treatment of bio-aviation fuel feedstock) to strengthen its responsiveness to the next-generation eco-friendly fuel market.

Driven by the expansion of its business portfolio, JC Chemical’s consolidated revenue for the first quarter of this year reached 121.2 billion won, a 55% increase compared to the same period last year. Operating profit and quarterly net profit turned to a profit compared to the previous quarter.

A J.C. Chemical official stated, “In the global biofuel market, the ability to secure a stable supply of raw materials has become a key competitive factor, alongside production technology.” The official added, “Based on our palm plantation operations and biofuel manufacturing capabilities, we will strengthen the profitability of our existing businesses while creating new growth opportunities in the next-generation eco-friendly energy market, such as HVO and SAF.”