Lotte Chemical-Samsung Engineering-Posco Holdings Collaborate on Malaysia Clean Hydrogen Project

Hydropower-Based Renewable Energy Supply Cooperation in Sarawak, Malaysia

Robert Hardin, President of SEDC Energy (front row, from left), Sarbini Suhaili, Director of Sarawak Energy, Hwang Jin-gu, Head of Basic Materials Business at Lotte Chemical, Yoo Byung-ok, Vice President of POSCO Holdings, Jung Joo-sung, Vice President of Samsung Engineering

[Asia Economy Reporter Oh Hyung-gil] Lotte Chemical, Samsung Engineering, and POSCO Holdings are launching a clean hydrogen project in Malaysia.

They signed a memorandum of understanding on the 7th for cooperation on supplying 900MW-scale hydropower-based renewable energy for the clean hydrogen project in Sarawak, Malaysia, together with Malaysia SEDC Energy and Sarawak Energy.

The signing ceremony was attended by Hwang Jin-gu, Head of Basic Materials Business and Hydrogen Energy Business Unit at Lotte Chemical; Jung Ju-seong, Vice President and Head of Management Support Office at Samsung Engineering; Yoo Byung-ok, Vice President and Head of Eco-friendly Future Materials Team at POSCO Holdings; Robert Hardin, President of SEDC Energy; Sarbini Suhaili, Chief Executive Officer of Sarawak Energy; Park Il-jun, 2nd Vice Minister of the Ministry of Trade, Industry and Energy; Abang Johari Openg, Governor of Sarawak; and Datuk Lim Joo Jin, Ambassador of Malaysia to Korea.

They agreed to jointly study stable power supply plans for the 'H2biscus' project, which uses over 900MW of electricity, and to review infrastructure preparations such as substations and transmission lines. Based on the research results, they plan to complete the ongoing project feasibility study within this year and officially launch the project aiming for commercial production by the end of 2027.

This project is expected to significantly contribute to achieving South Korea's carbon neutrality goals and revitalizing the hydrogen economy. The clean hydrogen produced through the Sarawak project will total 200,000 tons, of which 7,000 tons of green hydrogen will be used locally in Malaysia, and the remainder will be imported to Korea entirely in the form of ammonia. Lotte Chemical, Samsung Engineering, and POSCO Holdings plan to continuously develop overseas clean hydrogen projects and lead the domestic clean hydrogen supply.

Lotte Chemical aims to invest 6 trillion KRW by 2030 to produce 1.2 million tons of clean hydrogen, distribute and utilize it, and achieve sales of 5 trillion KRW.

Hwang Jin-gu, CEO of Lotte Chemical, said, "We appreciate the efforts of participating companies and the support of the local government for building hydrogen infrastructure. Lotte Chemical will contribute to revitalizing Korea's hydrogen economy and achieving carbon neutrality through comprehensive cooperation based on our global business capabilities and operational know-how of overseas production bases, including Malaysia."

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