Samsung Engineering, one of the world’s leading Engineering, Procurement, Construction and Project Management (EPC&PM) companies with SEDC Energy (a wholly owned subsidiary of Sarawak Economic Development Corporation (SEDC)) and Sarawak Energy Berhad, LOTTE Chemical, and POSCO Holdings jointly announced the signing of a Memorandum of Understanding (MoU) to study the potential of supplying at least 900 MW of hydro-based renewable power for the H2biscus Green Hydrogen/Ammonia project in Sarawak, Malaysia.

The 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.

The five companies signed the MoU on September 7th and the event was attended by Samsung Engineering CFO & Executive Vice President Ju-Seong Cheong, SEDC Chairman Ybhg. Tan Sri Datuk Amar Dr Haji Aziz bin Husain, SEDC Energy CEO Encik Robert Hardin, Sarawak Energy Group Berhad CEO YBhg. Datu Haji Sharbini Suhaili, LOTTE Chemical CEO Jin-Koo Hwang and POSCO Holdings Head of the Green Materials & Energy Business Team & Senior Executive Vice President Byeong-og Yoo.

Under the MoU signed, 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.

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.

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."