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KUCHING, Jan 26: Sarawak Economic Development Corporation (SEDC) subsidiary SEDC Energy Sdn Bhd will be developing a green hydrogren and ammonia project in Bintulu with international companies Samsung Engineering, Lotte Chemical and POSCO.
The Memorandum of Understanding (MoU) to jointly develop the Sarawak H2biscus Green Hydrogen/Ammonia Project (H2biscus Project) was signed virtually today, according to a press statement from Samsung Engineering.
The H2biscus Project aims to convert hydropower and natural gas to green hydrogen/methanol and blue hydrogen, and to convert hydrogen to ammonia, to supply hydrogen and ammonia to Korea and Sarawak.
Based on the results of a pre-feasibility study conducted in 2021, the project is expected to produce 7,000 tonnes/year of green hydrogen for Sarawak’s local use, 600,000 tonnes/year of blue ammonia, 630,000 tonnes/year of green ammonia and 460,000 tonnes/year of green methanol.
Samsung Engineering, Lotte Chemical, POSCO and SEDC Energy will be taking an active role in developing the entire cycle of the project including direct investment, construction, transportation and utilisation.
The feasibility study is scheduled to be verified by this month through an in-depth technology, legal, financial, tax, and market analysis.
After the feasibility study, pre-FEED (front end engineering and design) and FEED are completed, the engineering, procurement and construction (EPC) work will be implemented for the H2biscus Project.
Samsung Engineering president and chief executive officer (CEO) Sungan Choi said the H2biscus Project brings the opportunity to produce a wide range of eco-friendly products namely green hydrogen, green and blue ammonia, green methanol and carbon capture and utilisation (CCU).
He said 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.
Samsung Engineering is also currently executing the Sarawak Petchem methanol plant project in Bintulu, which is expected to produce 5,000 tons/day of methanol.
SEDC chairman Tan Sri Datuk Amar Abdul Aziz Husain said the H2biscus Project will play a pivotal role in the new energy sector while its scope and magnitude will place Sarawak as a player in the global market.
“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,” he said.
The MoU signing ceremony was also attended by Samsung Engineering Solution Business Division Head Park Cheonhong, Lotte Chemical ESG Management Head Kim Yeon-seop, POSCO Hydrogen Business Office Head Jo Joo-ik. — DayakDaily