KUCHING (January 26): Samsung Engineering Co Ltd, one of the world’s leading engineering, procurement and construction (EPC) and project management companies, has signed a memorandum of understanding (MoU) to develop a green hydrogen and ammonia project in Sarawak.
The Sarawak H2biscus Green Hydrogen/Ammonia Project (H2biscus) will be located in Bintulu and developed in collaboration with Lotte Chemical, POSCO and SEDC Energy Sdn Bhd, a subsidiary of Sarawak Economic Development Corporation (SEDC).
“The H2biscus project aims to convert hydroelectricity and natural gas into green hydrogen/methanol and blue hydrogen and convert hydrogen into ammonia, with the aim of supplying hydrogen and ammonia to South Korea. South and Sarawak,” Samsung Engineering said in a statement available here on Wednesday (January 26).
The signing ceremony was held in a virtual format attended by Park Cheonhong, Head of Solutions Business Division of Samsung Engineering, Kim Yeon-seop, Head of ESG (Environment, Social and Governance) Management of Lotte Chemical, Jo Joo-ik, head of POSCO’s hydrogen business, and SEDC. President Tan Sri Abdul Aziz Husain.
Under the MoU, the four parties will play an active role in the development of the entire project cycle, including direct investment, construction, transportation and use.
Samsung Engineering President and CEO Sungan Choi said the project will provide an opportunity to produce a wide range of environmentally friendly products, such as green hydrogen, green and blue ammonia, green methanol and carbon capture and utilization.
“The project will serve as an exemplary project of international standing for renewable energy trading and transporting hydrogen between [South] Korea and Malaysia, setting hydrogen standards for both countries,” he added.
Based on the results of a pre-feasibility study conducted in 2021, the project is expected to produce 7,000 tonnes of green hydrogen per year for local use in Sarawak, 600,000 tonnes of blue ammonia per year, 630,000 tonnes of green ammonia per year and 460,000 tonnes of methanol green ammonia per year.
Meanwhile, in the same statement, SEDC Energy said the project would play a pivotal role in the new energy sector, and its scope and scale would position Sarawak as a player in the global market.
“Partnerships with Samsung Engineering, Posco and Lotte Chemical will make this a reality that we really appreciate and appreciate. We hope the economic relationship between Sarawak, Malaysia and the Korean government will continue to blossom and strengthen in synergy with global zero carbon goals,” he added.
Samsung Engineering is currently executing the Sarawak PetChem methanol plant project in Bintulu, which is expected to produce 5,000 tons of methanol per day.
It also channels its efforts to be a “Green Solution Provider Beyond EPC”, providing green infrastructure and energy optimization services through process analysis based on digital optimization.
“By developing new hydrogen-related technologies and CCUS (carbon capture, utilization and storage) technology, we aim to transform the energy industry,” the company said.