Business

MOU signed to power hydrogen, ammonia production with hydro

Tags
MOU signed to power hydrogen, ammonia production with hydro
(photo courtesy Samsung Engineering)

Samsung Engineering, SEDC Energy, Sarawak Energy Berhad, Lotte Chemical, and POSCO Holdings have signed a Memorandum of Understanding to study the potential of supplying at least 900 MW of hydro-based power for the H2biscus Green Hydrogen/Ammonia project in Malaysia.

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 2027.

Of the products to be produced in this project, all the blue and green ammonia and blue methanol, except for a portion of green hydrogen that will be used in Sarawak, will be imported to Korea and used by Korean companies. Should it be confirmed to be commercially and technically feasible, the H2biscus project is expected to greatly contribute to achieving the Korean carbon neutrality goal and vitalization of the hydrogen economy. Samsung Engineering, Lotte Chemical, and POSCO Holdings plan to introduce clean hydrogen in Korea by developing overseas projects in cooperation with major overseas clients.

SEDC Energy is a wholly owned subsidiary of Sarawak Economic Development Corporation (SEDC). Sarawak Energy Berhad is the Sarawak state-owned electric utility. Its energy “predominantly comes from Sarawak’s rich hydropower resources,” according to the website. This includes facilities like the 1,285-MW Baleh Hydroelectric Project on the Baleh River. The press release did not indicate from which specific hydro projects the energy will be sourced.

“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,” said Samsung Engineering Chief Financial Officer and Executive Vice President Ju-Seong Cheong.

Samsung Engineering plans to contribute to revitalizing the local economy in Sarawak through this project and serve as an economic bridge between Korea and Malaysia. Development of the H2biscus project is expected to contribute to the expansion of local employment in Sarawak.