In a press release, Samsung Engineering announced the initiation of the FEED (Front-End Engineering Design) contract for the Sarawak H2biscus Green hydrogen and ammonia project. Samsung Engineering will collaborate with LOTTE CHEMICAL, the Korea National Oil Corporation, and Malaysia's SEDC (Sarawak Economic Development Corporation) Energy to execute the FEED contract.

Subsequently, an FID (Final Investment Decision) is expected at the end of 2024 based on this FEED contract. The project is anticipated to commence commercial production by early 2028. The project aims to produce green hydrogen domestically and export it to South Korea and Australia.

The Sarawak H2biscus green hydrogen project has an annual capacity of 150,000 tons, and the green ammonia conversion plant has a capacity of 850,000 tons. The H2biscus project will produce clean hydrogen from renewable energy in Sarawak.

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Samsung Engineering aims to optimize the efficiency and economic feasibility of the hydrogen production method through the application of PEM (polymer electrolyte membrane water electrolysis) and AEC (Alkaline Water Electrolysis).

The green hydrogen produced from the H2biscus project will be used locally in Sarawak, with the remainder converted to ammonia for export to South Korea. This will bolster the green hydrogen economy in South East Asia. The joint venture expects that the H2biscus project will significantly contribute to achieving Korea’s carbon neutrality.

The Kick-off meeting was held on 23rd November at Samsung Engineering headquarters in Sangil-dong, Gangdong-guI, South Korea. Hong Namkoong, President, and CEO of Samsung Engineering stated that they have taken the first step to execute the H2biscus project, which will have great significance both domestically and internationally.

About Samsung Engineering

Samsung Engineering is a leading global engineering, procurement, and construction (EPC) company that provides a wide range of services to the oil and gas, petrochemical, power, and infrastructure industries. The company is committed to developing sustainable solutions and is a pioneer in the green hydrogen industry.

Samsung Engineering is also a partner in the Glenfarne Hydrogen Fuels Initiative, which aims to develop a network of green hydrogen production and export facilities in Chile.

Samsung Engineering is committed to playing a leading role in the development of the green hydrogen industry. The company has a strong track record of delivering complex projects on time and on budget, and it is well-positioned to capitalize on the growing demand for green hydrogen.

Sarawak’s Contribution to Malaysia’s Green Hydrogen Economy

Sarawak, a state in Malaysia, is making significant strides in the development of the petrochemical economy. In addition to the H2biscus green hydrogen project, the state is also executing the H2ornbill project. Both of these projects will be operational in the Bintulu Petchem Industrial Park by 2028. These projects have the potential to transform Sarawak's energy landscape and establish it as a global leader in the production of green hydrogen.

Bintulu Petchem Industrial Park

The Bintulu Petchem Industrial Park is a strategically located petrochemical hub in Tanjung Kidurong, Bintulu, Sarawak, Malaysia. Envisioned as a world-class integrated petrochemical complex, the park is expected to house a diverse range of petrochemical and downstream industries, leveraging Sarawak's rich natural gas reserves and strategic location. Currently, there are three ongoing projects in the H2 park, including:

• Sarawak Petchem Methanol Plant
• H2biscus Project
• H2ornbill Project

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These projects represent the initial phase of development for the Bintulu Petchem Industrial Park, and more projects are expected to follow in the coming years. The park is poised to play a significant role in transforming Sarawak's economy and establishing the state as a key player in the global petrochemical industry.

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