MOSCOW (MRC) -- Samsung Engineering, one of the world’s leading engineering, procurement, construction and project management companies, has announced that it signed a Memorandum of Understanding (MoU) to develop a green hydrogen & ammonia project with Lotte Chemical, POSCO and SEDC Energy SDN. BHD., a Sarawak Economic Development Corporation (SEDC) subsidiary, according to Hydrocarbonprocessing.
The Sarawak H2biscus Green Hydrogen/Ammonia Project (H2biscus Project) will be located in Bintulu, Sarawak State, Malaysia. The signing ceremony, which was held in a non-face-to-face virtual format, was attended by senior executives from each company, including Park Cheonhong, Head of Samsung Engineering's Solution Business Division, Kim Yeon-seop, ESG Management Head of Lotte Chemical, Jo Joo-ik, head of POSCO’s Hydrogen Business Office, and SEDC Chairman YBhg. Tan Sri Datuk Amar (Dr.) Haji Abdul Aziz Bin Dato Haji Husain.
The H2biscus Project is aimed to converting hydropower and natural gas to green hydrogen/methanol and blue hydrogen and for the conversion of hydrogen to ammonia, aiming to supply hydrogen and ammonia to Korea and Sarawak. Based on the results of the pre-feasibility study conducted in 2021, the project is expected to produce 7,000 ton/year of green hydrogen for Sarawak’s local use, 600,000 ton/year of blue ammonia, 630,000 ton/year of green ammonia and 460,000 ton/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 utilization. The feasibility study is planned to be verified by this month through an in-depth technology, legal, financial, tax, and market analysis. After the Feasibility Study, Pre-FEED and FEED are completed, the EPC work will be implemented for the H2biscus Project.
Samsung Engineering is also currently executing the Sarawak Petchem methanol plant project in Bintulu, Sarawak Malaysia, which is expected to produce 5,000 tons/day of methanol.
Samsung Engineering is channeling its efforts to be a “Beyond EPC Green Solution Provider,” providing green infrastructure and energy optimization services through process analysis based on digital optimization. By developing new hydrogen-related technologies and CCUS technology, we will aim to transform the energy industry.
As MRC informed earlier, Lotte Chemical, South Korean petrochemical major, plans to take off-stream its naphtha cracker in Yeosu for a scheduled maintenance this year. The company is expected to put its Yeosu naphtha cracker under scheduled maintenance around May or June, 2022. Lotte's Yeosu naphtha cracker can produce 1.2 million tonnes per year (tpy) of ethylene.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
Lotte Chemical runs two naphtha crackers in South Korea. One cracker is located in Daesan county in Seosan which can produce 1.1 million tonnes per year of ethylene with the other 1.2 million tonnes per year cracker in the southwestern city of Yeosu.