[Special Stock] Pungkuk Jujeong, Ethanol as a 'Clever Solution' to Control US Gasoline Prices... Korea's First 99.99% Ethanol

[Asia Economy Reporter Park Hyungsoo] Pungkuk Jujeong's stock price is on the rise. It appears that the news of U.S. President Joe Biden easing regulations on ethanol (ethyl alcohol), a pollutant, to reduce the sharply increased gasoline prices caused by Russia's invasion of Ukraine, has influenced the stock price. MH Ethanol and Changhai Ethanol surged more than 20%, leading Pungkuk Jujeong to expand its gains as well.

At 9:34 a.m. on the 13th, Pungkuk Jujeong was trading at 19,500 KRW, up 9.86% from the previous day.

Gasoline sold in the U.S. contains about 10% alcohol (ethanol). The Environmental Protection Agency announced that when President Biden issues a waiver in Iowa, a corn-growing state, it will immediately issue an emergency rollback order (E15) allowing the sale of gasoline containing 15% ethanol.

Since its founding in 1953, Pungkuk Jujeong has been manufacturing ethanol, a raw material for alcoholic beverages, using world-class advanced plants and energy-saving facilities. Additionally, it owns industrial gas filling stations and special gas manufacturing plants. It held a 9.7% market share in the domestic ethanol market last year, similar in scale to MH Ethanol's 9.5%.

It is a comprehensive gas manufacturer producing and supplying various industrial high-pressure gases such as oxygen, nitrogen, argon, helium, medical gases, refrigerant gases, and mixed gases. The hydrogen gas division produces ultra-high purity hydrogen and eco-friendly high-purity acetylene based on top domestic technology.

Pungkuk Jujeong Industrial invested 20 billion KRW to establish the nation's first ultra-high purity ethanol plant in Daecheon-dong, Dalseo-gu. Ultra-high purity ethanol, with a purity of 99.99% or higher and impurity levels at one part per ten million, is used as a cleaning agent for advanced materials such as electronics and semiconductors. The company explained that to maintain ultra-precise purity, it introduced a clean room and automatic shipment facilities where no human contact occurs during production and shipment stages, fundamentally blocking impurity contamination. It added that nitrogen is charged into storage tanks to prevent moisture contamination from the atmosphere, maintaining the highest cleanliness.

The ethanol production process is technologically advanced compared to existing commercial plants, and a patent registration review is underway. Kim Dongho, plant manager of Pungkuk Jujeong Industrial, said, "After launch, we expect exports not only to the domestic market but also to Japan, China, and Vietnam," adding, "We will take a step further from an alcohol company to an advanced product materials company."