18-12-2024

SAMSUNG E&A wins USD 955 million contract for a biorefinery in Malaysia

SAMSUNG E&A, a total solutions provider for the global energy industry, announced today that it secured the contract for a biorefinery that will have the capability to produce Sustainable Aviation Fuel (SAF) and other biofuels such as Renewable Diesel / Hydrogenated Vegetable Oil (HVO) to cater to the growing demands of the global aviation and transportation industries by tapping each partner’s expertise. It is SAMSUNG E&A’s first entry into the SAF market, a new business initiative in the era of energy transition.

SAMSUNG E&A announced that it had received a Letter of Award (LoA) for the EPCC (Engineering, Procurement, Construction and Commissioning) work of Bio-Refinery Project in Malaysia from Enilive S.p.A ("Enilive"), on behalf of a joint venture consisting of PETRONAS Mobility Lestari Sdn. Bhd. ("PMLSB"), a subsidiary of PETRONAS; Enilive, and Euglena Co., Ltd. ("Euglena"). The EPCC contract, valued at USD 955 million, is targeted to be officially signed by the end of January 2025.

This biorefinery will be located within PETRONAS’ Pengerang Integrated Complex (PIC), Johor, Malaysia, and upon completion, will have the capability to process about 650,000 tonnes per year of raw materials to produce SAF, HVO, and bio-naphtha.

The wastes and residue feedstocks for the biorefinery will comprise used vegetable oils, animal fats, waste from the processing of vegetable oils, and other biomass, including microalgae oils are expected to be explored in the mid-term.

SAMSUNG E&A has entered the new SAF market for the first time, with this contract attracting attention as a next-generation eco-friendly energy source as it can significantly reduce carbon emissions.

As part of the global effort to reduce carbon emissions, major countries are implementing regulations to increase the adoption of SAF. This trend is expected to drive steady growth in the SAF market. For instance, the European Union will mandate the placing on the market of at least 2% SAF blends in aviation fuel from next year onwards. Similarly, Singapore will introduce a 1% or higher SAF blending requirement by 2026. Following suit, South Korea plans to introduce mandatory SAF blending from 2027, with gradual expansion slated for subsequent years.

SAMSUNG E&A plans to leverage the profound experience gained from executing more than ten projects in Malaysia, with its differentiated technologies such as modularization and automation. Additionally, SAMSUNG E&A intends to collaborate closely with the client and technology partners to deliver an excellent project.

Hong Namkoong, President and CEO of SAMSUNG E&A stated, “Since we are carrying out the project in Malaysia, a major Asian market for us, we expect stable performance with our accumulated experience and technology. By successfully carrying out the company’s first SAF project, we will expand our position in the carbon-neutral, eco-friendly field in the future.”

Meanwhile, earlier this year, SAMSUNG E&A changed its name from SAMSUNG Engineering to reflect the evolving business environment of the energy transition era and its future scalability. Further, it established a mid-to-long-term core strategy of “addressing societal challenges through technology” and is shifting its entire organizational capacity to advancing new energy transition businesses such as hydrogen, carbon neutrality, and SAF.