FEED work begins on green hydrogen and ammonia project in Malaysia

South Korean Samsung Engineering has started front-end engineering design (FEED) work on the Sarawak H2biscus green hydrogen and ammonia project in Malaysia.

Illustration only; Archive; Courtesy of Samsung Engineering

Together with Lotte Chemical, Korea National Oil Corporation and Malaysia’s Sarawak Economic Development Corporation Energy (SEDC Energy), the company launched the FEED contract for the H2biscus with a kick-off meeting on November 23.

Samsung Engineering is set to execute the FEED for the green hydrogen plant with an annual capacity of 150,000 tons and a green ammonia conversion plant with a capacity of 850,000 tons in Sarawak, with expected completion in 2024.

The company said it plans to derive a hydrogen production method optimized in terms of efficiency and economic feasibility by applying both PEM (polymer electrolyte membrane water electrolysis) and AEC (alkaline water electrolysis) technologies, which are representative water electrolysis technologies, at the FEED stage.

Based on this FEED, a final investment decision (FID) will be made at the end of 2024, Samsung Engineering said, adding that once FID is approved, engineering, procurement and construction (EPC) is expected to begin right after, at the end of 2024. Commercial production of hydrogen is expected in early 2028.

According to Samsung Engineering, the alliance on this project predicts that H2biscus will greatly contribute to achieving Korea’s carbon neutrality goal and revitalizing the hydrogen economy.

Some of the clean hydrogen to be produced through this project will be used locally in Sarawak and the rest will be converted to ammonia form and brought into the country to be used in various forms, the company noted.

Hong Namkoong, President and CEO of Samsung Engineering, stated: “We have taken the first step for carrying out the main project of the H2biscus project, which has great significance both domestically and internationally. We will successfully develop the project as well as the FEED, making H2biscus the role model for global hydrogen projects.”

To remind, Samsung Engineering, SEDC Energy, Sarawak Energy Berhad, Lotte Chemical and POSCO Holdings signed a memorandum of understanding (MoU) to study the potential of supplying at least 900 MW of hydro-based renewable power for the green hydrogen and ammonia project in Malaysia back in September 2022, building upon the MoU signed by Samsung Engineering, Lotte Chemical and POSCO Holdings with SEDC Energy for the H2biscus project earlier in the year.