KUCHING (Jan 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 together with Lotte Chemical, POSCO and SEDC Energy Sdn Bhd, a subsidiary of the Sarawak Economic Development Corporation (SEDC).

“The H2biscus project aims to convert hydropower and natural gas to green hydrogen/methanol and blue hydrogen and convert hydrogen to ammonia, with the target to supply hydrogen and ammonia to South Korea and Sarawak,” Samsung Engineering said in a statement made available here on Wednesday (Jan 26).

The signing ceremony was held in a virtual format and attended by Samsung Engineering head of solution business division Park Cheonhong, Lotte Chemical head of ESG (environmental, social and governance) management Kim Yeon-seop, POSCO hydrogen business manager Jo Joo-ik and SEDC chairman Tan Sri Abdul Aziz Husain.

Under the MoU, the four parties will be taking active roles in developing the entire cycle of the project, including direct investment, construction, transportation and utilisation.

Samsung Engineering president and chief executive officer Sungan Choi said the project would bring an opportunity to produce a wide range of eco-friendly products, such as green hydrogen, green and blue ammonia, green methanol, and carbon capture and utilisation.

“The project will serve as an exemplary project of international standing for renewable energy trading and hydrogen transportation between [South] Korea and Malaysia, establishing hydrogen-related standards for the two 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 Sarawak’s local use, 600,000 tonnes of blue ammonia annually, 630,000 tonnes of green ammonia annually and 460,000 tonnes of green methanol 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 magnitude would 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 the economic relationship between Sarawak, Malaysia and the Korean government will continue to blossom and strengthen and in synergy with global net-zero carbon emissions goals,” it added.

Samsung Engineering is currently executing the Sarawak PetChem methanol plant project in Bintulu, which is expected to produce 5,000 tonnes per day of methanol.

It is also channelling its efforts to be a “beyond EPC green solution provider”, providing green infrastructure and energy optimisation services through process analysis based on digital optimisation.

“By developing new hydrogen-related technologies and CCUS (carbon capture, utilisation and storage) technology, we aim to transform the energy industry,” the company said.