Korean Clean Fuel Firm Bio Friends to Invest $30 Million in DME Plant at Assam’s Namrup

South Korean clean energy firm Bio Friends Inc. is establishing a dimethyl ether (DME) production plant in Namrup, Assam, marking a significant milestone in India’s drive for alternative fuels. This project is a joint venture with Assam Petro-Chemicals Ltd. (APL) and was formalized through a Memorandum of Understanding signed during the Advantage Assam 2.0 summit held in Guwahati in February 2025.

The facility’s first phase will have an annual production capacity of 40,000 tons, backed by a capital investment of approximately $30 million (around Rs 250 crore or 43 billion Korean won). This initiative supports India’s broader strategy to promote clean fuels and reduce carbon emissions in line with growing environmental policies emphasizing sustainability.

Bio Friends, established in November 2016, specializes in producing and supplying DME — a renewable, cleaner alternative fuel. Utilizing proprietary technology, the company purifies DME and distributes it globally. It operates across various sectors such as compound chemicals, hydrogen energy, power generation, and fuels, with a presence in multiple countries, including Indonesia, Malaysia, Japan, China, Austria, the USA, and Norway.

As part of the Indo-Korean partnership, Bio Friends received approval from the Korean government to study the Indian DME market for three months. This study involves economic feasibility analysis, plant design, and production capacity assessment. Upon receiving APL board approval, the project will move to full-scale implementation.

The investment is supported by Indian institutional investors, DME promotion companies, and South Korean backers, aiming to position Assam as a hub for India’s clean fuel movement using LPG+DME blended fuel for both domestic and industrial uses.

Dimethyl ether is a synthetic, colorless gas serving as an alternative to diesel and LPG, producible from coal, natural gas, and biomass. Its compatibility with existing LPG infrastructure makes it a promising component in India’s green fuel mix.

At the Advantage Assam 2.0 summit, Prime Minister Narendra Modi highlighted Assam’s critical role in India’s clean energy roadmap and its importance in achieving carbon neutrality targets through renewable projects like the DME plant.

Bio Friends CEO Wonjun Cho expressed the company’s commitment to entering the Indian fuel market via Assam. The first phase includes a 40,000-ton plant, with plans to expand to 80,000 tons in the second phase, boosting carbon-neutral fuel supply in India. Cho also emphasized the project’s potential economic and social benefits for Assam and noted a Bio Friends team’s planned visit to India in late May for further development.

From the Indian side, APL Managing Director Rajnesh Gogoi outlined extensive benefits, including technology transfer from Bio Friends, access to advanced bio-based chemical processes, and sustainable petrochemical production. Gogoi emphasized job creation in operations, logistics, and management, along with specialized skills and technical training to enhance the local workforce’s capacity.

Revenue from DME production and sales will fund local infrastructure and public services, reducing Assam’s reliance on fossil fuels like coal and LPG, improving environmental quality, and boosting public health.

Additional benefits include enhanced energy security, promotion of renewable feedstocks such as biomass, and positioning Assam as an industrial and chemical development hub. Since DME finds applications in transport, refrigeration, and aerosol manufacturing, Assam stands to become a key player across multiple industries.

Infrastructure upgrades in transport, storage, and supply chains around the plant will follow, alongside community development initiatives aimed at improving energy access and living standards.

Corporate social responsibility efforts by Bio Friends and APL may support education, healthcare, and renewable energy projects. This collaboration is expected to elevate Assam’s profile nationally and internationally as a leader in green energy, attracting further investments and partnerships.