Samsung Engineering, one of the world’s leading engineering, procurement, construction and project management (EPC&PM) companies, has announced that it has signed a Memorandum of Understanding (MoU) to develop a green hydrogen and ammonia project with Lotte Chemical, POSCO and SEDC Energy SDN. BHD. – a Sarawak Economic Development Corp. (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 at 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 7000 tpy of green hydrogen for Sarawak’s local use, 600 000 tpy of blue ammonia, 630 000 tpy of green ammonia and 460 000 tpy of green methanol.
The companies will be taking an active role in developing the entire cycle of the project, including direct investment, construction, transportation and utilisation. The feasibility study is planned to be verified in January 2022 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 project.