LOTTE Chemical - Samsung Engineering - POSCO Jointly Develops Clean Hydrogen Project in Sarawak, Malaysia

█  Global chemical company LOTTE Chemical, global plant company Samsung Engineering, and global steel company POSCO teams up with

    SEDC Energy of Malaysia to begin development of a clean hydrogen project in Sarawak, Malaysia

█  Annual production of 630,000 tons of green ammonia, 600,000 tons of blue ammonia, and 460,000 tons of green methanol to be brought into Korea... Expected

     to achieve domestic carbon-neutral growth and contribute in promoting the hydrogen economy

█  LOTTE Chemical ESG Management Division Director Kim Yeon-seop, “Through our knowhow for global business accumulated in 22 countries around the world

     including Malaysia and our efficient production capacities harnessed through our 26 production bases, we will advocate the promotion of the hydrogen economy

     in Korea and for building an eco-friendly ecosystem”

LOTTE Chemical, Samsung Engineering and POSCO begins development of a clean hydrogen project in Malaysia.

LOTTE Chemical, Samsung Engineering, POSCO and SEDC Energy (Sarawak Economic Development Corporation Energy) of Malaysia announced the signing of an MOU Memorandum of Understanding) for the ‘Sarawak, Malaysia H2biscus Clean Hydrogen Project Development.’ This MOU signing ceremony was held over contact-free video conferencing and it was joined by senior management of each company such as ESG Management Division Director Kim Yeon-seop from LOTTE Chemical, Solution Business Division Director Park Cheon-hong from Samsung Engineering, Hydrogen Business Chief Cho Joo-ik from POSCO, and Chairman Abdul Aziz Bin Husain from SEDC.

Through this MOU, LOTTE Chemical, Samsung Engineering, and POSCO will partner up with SEDC Energy that oversees that hydrogen sector of Sarawak, Malaysia to begin development of the clean hydrogen project. The four companies plan to construct a plant with an annual yield of 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 in Sarawak based on the results of the pre-feasibility study held last year. Plans are to verify this through a feasibility study including technology, laws, finances, taxes, and market analysis this month as it kicks off full-fledged project development.

Through this project, the cooperation of LOTTE Chemical, Samsung Engineering and POSCO will have tangible results for the development and implementation of clean hydrogen. The three companies jointly participated in events such as the ‘Green Ammonia Meeting for Carbon Neutrality’ in July and ‘Korean Hydrogen Economy Performance Report Conference’ in October of last year, and in particular they entered an ‘MOU for Hydrogen Project Development’ in October to cooperate for overseas hydrogen project development. The three companies plan to complete this project successfully based on the expertise of each respective company and the partnership they built together.

It is anticipated that it will also contribute to the achievement of Korean carbon neutrality goals and in promoting the hydrogen economy. Among the products that will be produced through this project, all of the clean ammonia and clean methanol excluding 7,000 tons of green hydrogen that will be used in Malaysia will be brought into Korea for use by Korean businesses. The three companies further intend to lead the implementation of clean hydrogen in Korea by developing the overseas clean hydrogen project by collaborating with major foreign clients.

LOTTE Chemical ESG Management Division Director Kim Yeon-seop commented, “I am very pleased to be able to take part in this project by collaborating with companies having the highest expertise in their respective fields,” and added, “Through our knowhow for global business accumulated in 22 countries around the world including Malaysia and our efficient production capacities harnessed through our 26 production bases, we will advocate the promotion of the hydrogen economy in Korea and for building an eco-friendly ecosystem”

Samsung Engineering Solution Business Division Director Park Cheon-hong stated, “I am happy to see the first fruits of our collaboration for implementing foreign clean hydrogen,” while adding, “We will make this project successful based on our strong local network constructed through the Sarawak Methanol Plant Project that we are currently working on.” He further announced their aspiration saying, “By making strategic partnerships and procuring necessary technologies in the hydrogen and carbon neutrality sectors, we will strengthen our further reinforce our position as a ‘Green Solution Provider’.”

POSCO Hydrogen Business Chief Cho Joo-ik explained, “POSCO is currently participating in several global hydrogen production projects, as we amass capacities in the hydrogen business.” He added, “As the Sarawak region is expected to become a center for clean hydrogen production, we will complete this collaboration successfully in our efforts for implementing clean hydrogen in Korea and becoming a hydrogen society.”

SEDC Chairman Abdul Aziz Bin Husain commented, “Based on our teamwork with our partners, we will successfully complete the H2biscus project and become a global powerhouse in the green energy sector,” and added, “I hope that we can continue to create synergy to achieve the global carbon neutrality goals through ongoing economic cooperation between Sarawak and the Republic of Korea.”