South Korea’s Samsung Engineering, Posco and Lotte Chemical plus SEDC Energy - a Sarawak Economic Development Corporation (SEDC) subsidiary– have signed a memorandum of understanding to develop a green hydrogen and ammonia project.

The Sarawak H2biscus green hydrogen/ammonia project (H2biscus Project) will be located in Bintulu, East Malaysia which is already home to the Petronas LNG Complex and Shell’s gas-to-liquids facility.

The H2biscus Project is looking to convert 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 tonnes per annum of green hydrogen for Sarawak’s domestic market, 600,000 tpa of blue ammonia, 630,000 tpa of green ammonia and 460,000 tpa of green methanol.

The four proponents will take an active role 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 before the end of this month through an in-depth technology, legal, financial, tax and market analysis.

After the feasibility study, pre-front-end engineering and design work and FEED are completed, the engineering, procurement and construction work will be implemented for the H2biscus project.

“The H2biscus Project brings the opportunity to produce a wide range of eco-friendly products, such as green hydrogen, green and blue ammonia, green methanol and CCU,” said Samsung Engineering chief executive Sungan Choi.

“The project will serve as an exemplary project of international standing for renewable energy trading and hydrogen transportation between Korea and Malaysia, establishing hydrogen-related standards for the two countries.”

SEDC Energy said: “H2biscus Project will play a pivotal role into this new energy sector and the scope and magnitude of the project, will 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 our economic relationship between Sarawak, Malaysia and the Korean government will continue to blossom and strengthen and be in synergy with the global net-zero carbon emissions goals.”

The virtual signing ceremony for the H2biscus MoU was attended by senior executives 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 Abdul Aziz Husain.

Samsung Engineering is also currently executing the Sarawak Petchem methanol plant project in Bintulu, which is expected to produce 5000 tonnes per day of methanol.

Samsung Engineering added is 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 will aim to transform the energy industry,” the South Korean contractor said.

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