South Korea’s Samsung Engineering is joining the group of players aiming to study the potential of supplying at least 900 megawatts of hydro-based renewable power for the H2biscus green hydrogen/ammonia project (H2biscus project) in Sarawak, Malaysia.

Samsung and South Korean compatriots Posco and Lotte Chemical are teaming up with Sarawak Energy and the Sarawak Economic Development Corporation (SEDC) for the study.

Under the latest memorandum of understanding signed for the H2biscus project, the five companies will jointly evaluate the power supply capacity and facilities such as substations and transmission infrastructure that would be required to supply the project.

Completion of the H2biscus project feasibility study is expected before year-end and Samsung said the goal is to achieve commercial production by the end of 2027.

Samsung Engineering chief financial officer 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 vitalisation of the hydrogen economy and strengthen our status as a ‘green solution provider’ through strategic alliances and technology acquisition in the field."

Should it be confirmed to be commercial and technically feasible, the H2biscus project is expected to contribute to the achievement of South Korea’s carbon neutrality goal and vitalisation of the hydrogen economy.

Of the products to be produced in this project, all blue and green ammonia and blue methanol, except for some of the of green hydrogen that will be used locally in Sarawak, will be imported to South Korea and used by South Korean companies.

Clean hydrogen

Samsung Engineering, Lotte Chemical and Posco plan to take the lead in introducing clean hydrogen in South Korea by developing overseas clean hydrogen projects in cooperation with major overseas clients.

In tandem, Samsung Engineering plans to further strengthen its strategic partnership with the East Malaysian state of Sarawak by discussing business development and local economic cooperation plans with the Premier of Sarawak, SEDC chairman and Sarawak Energy’s chief executive.

The South Korean engineering, procurement and construction contractor is already developing the Sarawak methanol project and in July it won the EPC workscope for the onshore gas plant for Shell’s Rosmari Marjoram field development there.