Samsung Engineering, Lotte Chemical, POSCO and SEDC Energy sign MoU for developing green hydrogen & ammonia project in Sarawak Malaysia

Samsung Engineering, one of the world’s leading engineering, procurement, construction and project management (EPC&PM) companies, announced today,  that it signed a Memorandum of Understanding (MoU) to develop a green hydrogen & ammonia project with Lotte Chemical, POSCO and SEDC Energy SDN. BHD., a Sarawak Economic Development Corporation (SEDC) subsidiary. The Sarawak H2biscus Green Hydrogen/Ammonia Project (H2biscus Project) will be located in Bintulu, Sarawak State, Malaysia. The signing ceremony, which was held in a non-face-to-face virtual format, was attended by senior executives from each company, including Park Cheonhong, Head of Samsung Engineering's Solution Business Division, Kim Yeon-seop, ESG Management Head of Lotte Chemical, Jo Joo-ik, head of POSCO’s Hydrogen Business Office, and SEDC Chairman YBhg. Tan Sri Datuk Amar (Dr.) Haji Abdul Aziz Bin Dato Haji Husain.

The H2biscus Project is aimed to converting hydropower and natural gas to green hydrogen/methanol and blue hydrogen and for the conversion of hydrogen to ammonia, aiming to supply hydrogen and ammonia to Korea and Sarawak. Based on the results of the pre-feasibility study conducted in 2021, the project is expected to produce 7,000 ton/year of green hydrogen for Sarawak’s local use, 600,000 ton/year of blue ammonia, 630,000 ton/year of green ammonia and 460,000 ton/year of green methanol.

Samsung Engineering, Lotte Chemical, POSCO and SEDC Energy will be taking an active role in developing the entire cycle of the project including direct investment, construction, transportation and utilization. The feasibility study is planned to be verified by this month through an in-depth technology, legal, financial, tax, and market analysis. After the Feasibility Study, Pre-FEED and FEED are completed, the EPC work will be implemented for the H2biscus Project.

Sungan Choi, President and CEO of Samsung Engineering, said: “The H2biscus Project brings the opportunity to produce a wide range of eco-friendly products, such as green hydrogen, green and blue ammonia, green methanol and CCU. The project will serve as an exemplary project of international standing for renewable energy trading and hydrogen transportation between Korea and Malaysia, establishing hydrogen-related standards for the two countries.”

SEDC Energy, said: “H2biscus Project will play a pivotal role into this New Energy sector and the scope and magnitude of the project, will place Sarawak as a player in the global market as well. The partnerships with Samsung Engineering, POSCO and Lotte Chemical will make this a reality which we truly value and appreciate. We hope our economic relationship between Sarawak, Malaysia and the Korean government will continue to blossom and strengthen and be in synergy with the global net-zero carbon emissions goals.”

Samsung Engineering is also currently executing the Sarawak Petchem methanol plant project in Bintulu, Sarawak Malaysia, which is expected to produce 5,000 tons/day of methanol.

Samsung Engineering is channeling its efforts to be a “Beyond EPC Green Solution Provider,” providing green infrastructure and energy optimization services through process analysis based on digital optimization. By developing new hydrogen-related technologies and CCUS technology, we will aim to transform the energy industry.

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