[Click eStock] "JC Chemical Expected to Benefit from Globally Watched Indonesian Biofuel Market"

On January 14, independent research firm ValueFinder analyzed JC Chemical, stating that the company is expected to benefit from directly owning palm plantations in the Indonesian biofuel market, which is drawing global attention.

Founded in 2006, JC Chemical is a renewable energy company specializing in the production of biodiesel and bio-heavy oil. The company was listed on the KOSDAQ market in 2011 and expanded its business in 2012 by acquiring a company with plantations of approximately 10,000 hectares. By expanding diverse domestic and international raw material supply chains and developing technology through a dedicated R&D organization, JC Chemical has secured a cost advantage over competitors. Going forward, the company is expected to be re-evaluated not just as a biofuel manufacturer but as a comprehensive eco-friendly energy company with self-sufficient raw material capabilities.

Lee Chungheon, a researcher at ValueFinder, stated, "Indonesia is pushing to introduce the B50 policy, which mixes palm oil into biodiesel at up to 50%." He explained, "As of last year, the mix had already reached 40%, and since Indonesia is leading the world's most aggressive palm oil blending policy, JC Chemical is also likely to benefit from these policies."

The researcher particularly noted that over the past several years, Hyundai Motor Group has been expanding its strategic businesses in Indonesia, including establishing production bases, securing biodiesel raw materials, and building a hydrogen ecosystem. After Hyundai began operating Indonesia's first complete vehicle plant in 2022, it achieved the top market share in the local electric vehicle market within just one year. In addition, Hyundai Oilbank, the group's refining affiliate, signed a long-term supply contract with a local Indonesian palm oil company to secure biodiesel raw materials, and last year launched a hydrogen production project utilizing biogas.

The researcher added, "JC Chemical is the only domestic biofuel company that has achieved vertical integration from upstream palm plantations, which are the main raw material, to downstream biofuel production. If the company benefits from both market growth and industry expansion going forward, it is expected that its strong performance will lead to a re-evaluation of its corporate value."