24-11-2023

Samsung Engineering commences Sarawak H2biscus FEED project in Malaysia

Samsung Engineering, a world leading engineering solutions and project management company, announced today, that with LOTTE CHEMICAL, Korea National Oil Corporation and Malaysia's SEDC Energy the FEED contract for the Sarawak H2biscus Green Hydrogen & Ammonia project in Malaysia was launched with a kick-off meeting.

The kick-off meeting was held on the 23rd November at Samsung Engineering's headquarters, GEC (Global Engineering Center) in Sangil-dong, Gangdong-gu.  Samsung Engineering Executive Vice President & Head of Sustainable Solution Business Division Cheonhong Park, LOTTE CHEMICAL Division Manager Kim Yong-hak, Korea National Oil Corporation Team Leader Jang Jin-hwan, SEDC Energy President Robert Hardin, and other officials from each participating company participated, reviewed major subjects and schedules related to FEED design progress, and shared strategies.

Samsung Engineering will execute the FEED for the green hydrogen plant with an annual capacity of 150,000 tons and a green ammonia conversion plant with a capacity of 850,000 tons in Sarawak, Malaysia, expected completion in 2024.

Samsung Engineering plans to derive a hydrogen production method optimized in terms of efficiency and economic feasibility by applying both PEM (polymer electrolyte membrane water electrolysis) and AEC (alkaline water electrolysis) technologies, which are representative water electrolysis technologies, at the FEED stage.

This H2biscus project is a project to produce clean hydrogen based on renewable energy in Sarawak, Malaysia and introduce it to Korea with the participation of Samsung Engineering, LOTTE CHEMICAL, Korea National Oil Corporation and SEDC Energy of Malaysia, launched in early 2022. The project has started and is on track, including signing a renewable power MOU with the Sarawak Electricity Authority in September of the same year.

The H2biscus project is a project to produce and introduce clean hydrogen based on renewable energy in Sarawak, Malaysia, and is cruising by securing renewable power in September of the same year after starting the project in early 2022. Based on this FEED, a final investment decision (FID: Final Investment Decision) will be made at the end of 2024. Once FID is approved EPC is expected to begin right after at the end of 2024 and commercial production of hydrogen is expected for early 2028.

The alliance on this project predict that H2biscus will greatly contribute to achieving Korea's carbon neutrality goal and revitalizing the hydrogen economy. Some of the clean hydrogen to be produced through this project will be used locally in Sarawak, and the rest will be converted to ammonia form and brought into the country to be used in various forms. The Malaysian state of Sarawak plans to contribute to revitalizing the local economy and implement a hydrogen economy in earnest through the successful development of the H2biscus project.

Hong Namkoong, President and CEO of Samsung Engineering said, “We have taken the first step for carrying out the main project of the H2biscus project, which has great significance both domestically and internationally. We will successfully develop the project as well as the FEED, making H2biscus the role model for global hydrogen projects."

In the era of energy transition, Samsung Engineering is focusing on securing technology and business development in the hydrogen, ammonia, and CCUS fields addressing social challenges with technology and strengthen the foundation for mid- to long-term sustainable growth. Samsung Engineering is seeking to expand business opportunities by securing technology through partnerships with domestic and foreign companies as well as utilizing its network with major overseas clients. In particular, similar to H2biscus, Samsung Engineering’s Hydrom Clean Hydrogen Project in Oman, which produces clean hydrogen from overseas and introduces it into Korea, and the Shepherd CCS Project, which transports and stores domestically generated carbon and stores it overseas, are gaining traction.