Samsung Engineering, with SEDC Energy (a wholly owned subsidiary of Sarawak Economic Development Corporation (SEDC)) and Sarawak Energy Berhad, LOTTE CHEMICAL, and POSCO Holdings today jointly announced the signing of a MoU to study the potential of suppling at least 900MW of hydro-based renewable power for the H2biscus Green Hydrogen/Ammonia project (H2biscus project) in Sarawak, Malaysia.

Today’s MoU builds upon the earlier MoU signed between Samsung Engineering, LOTTE CHEMICAL, and POSCO Holdings with SEDC Energy for the H2biscus project earlier this year.

Under the MoU signed today, the five companies will jointly study the power supply capacity and facilities such as substations and transmission infrastructure that would be required to supply the project. In addition, the completion of the H2biscus project feasibility study is anticipated within this year and the goal of commercial production is set by the end of year 2027.

Should it be confirmed to be commercial and technically feasible, the H2biscus project is expected to greatly contribute to the achievement of the Korean carbon neutrality goal and vitalization of the hydrogen economy. Of the products to be produced in this project, all blue and green ammonia and blue methanol, except for a portion of green hydrogen which will be used locally in Sarawak, will be imported to Korea and used by Korean companies. Samsung Engineering, LOTTE CHEMICAL, and POSCO Holdings plan to take the lead in introducing clean hydrogen in Korea by developing overseas clean hydrogen projects in cooperation with major overseas clients.

Meanwhile, Samsung Engineering will further strengthen its strategic partnership with the Malaysian state of Sarawak by discussing business development and local economic cooperation plans in earnest with the visit of the Premier of Sarawak, SEDC Chairman and Sarawak Energy Berhad’s Group CEO. Further, Samsung Engineering is currently successfully carrying out the Sarawak Methanol project, and is expanding its position as an optimal business development partner for Sarawak by winning the Shell OGP (Onshore Gas Plant for Rosmari Marjoram) project in July this year.

In addition, Samsung Engineering plans to contribute to the revitalization of the local economy in Sarawak through this project and serve as an economic bridge between Korea and Malaysia. Last month, Malaysian state-owned energy company Petronas with several Korean companies including Samsung Engineering, LOTTE CHEMICAL etc. signed a business agreement on joint cooperation in the development of the Shepherd CCS Project, an international project between Korea and Malaysia, Asia's first carbon capture, transportation, and storage business. Further, with the successful development of the H2biscus project, it is expected that it will contribute to the expansion of local employment in Sarawak.

Samsung Engineering CFO & Executive Vice President Ju-Seong Cheong said, “We expect that the signing of this MoU for renewable power supply will be an important milestone in the Sarawak H2biscus project, and we are confident that we will provide a successful project through our existing robust local network. Samsung Engineering will contribute to the achievement of the Korean carbon neutrality goal and vitalization of the hydrogen economy, and strengthen our status as a 'Green Solution Provider' through strategic alliances and technology acquisition in the field."