Green Energy Collaboration: Domestic Companies Drive Clean Hydrogen Business in Malaysia

Malaysian companies, including POSCO, Samsung Engineering, and Lotte Chemical, are ramping up efforts to advance the clean hydrogen industry in the country.

The project, called the ‘H2biscus Clean Hydrogen Project Development,’ is set to commence basic design work this year, with full-scale development scheduled to begin next year.

Representatives from Samsung Engineering, POSCO, Lotte Chemical, and other stakeholders met with Sarawak Governor Abang Johari Openg in Kuching, Malaysia on the 12th to discuss the project’s details. The Sarawak Economic Development Corporation (SEDC) confirmed that the parties have had multiple discussions and are on track to sign a contract for Front-End Engineering Design (FEED), which is expected to last approximately a year.

In January of last year, Samsung Engineering, POSCO, and Lotte Chemical signed a memorandum of understanding (MOU) with SEDC Energy to collaborate on the clean hydrogen project. The domestic companies will join forces with SEDC Energy, the governing body responsible for the hydrogen sector in Sarawak, to drive the development of clean hydrogen projects.

Building on the pre-feasibility study conducted in 2021, the four companies have outlined their plans to construct a plant in Sarawak capable of producing △630,000 tons of green ammonia, △600,000 tons of blue ammonia, △460,000 tons of green methanol, and △7,000 tons of green hydrogen.

While green hydrogen produced in the project will be primarily used locally, all clean ammonia and clean methanol, excluding green hydrogen, will be imported into Korea to support domestic companies. Lotte Chemical, Samsung Engineering, and POSCO aim to lead the adoption of clean hydrogen in Korea by leveraging their expertise and collaborating with major overseas stakeholders to develop clean hydrogen projects abroad.

The goals of this ambitious clean hydrogen initiative in Malaysia are multi-fold. By establishing a comprehensive clean hydrogen supply chain, the project aims to contribute to global decarbonization efforts, support the growth of the hydrogen economy, and foster international collaboration in the clean energy sector.

However, several challenges lie ahead. The successful implementation of the project will require significant investment, technological advancements, and collaboration among multiple stakeholders. Additionally, ensuring a reliable and affordable supply of renewable energy for hydrogen production will be crucial to the project’s long-term success.

The collaboration between POSCO, Samsung Engineering, Lotte Chemical, and SEDC Energy holds great promise for accelerating the adoption of clean hydrogen as a key element in the global energy transition. The successful development of the H2biscus Clean Hydrogen Project in Malaysia could serve as a model for future international collaborations and propel the clean hydrogen industry forward.