LOTTE Chemical, Samsung Engineering, POSCO Holdings, and SEDC Energy

Cooperate with Sarawak Energy Berhad in the Clean Hydrogen Business

█ On the 7th, entered MOU for renewable power supply cooperation based on hydrogen power for the ‘Malaysia Sarawak H2biscus Clean Hydrogen Project’...

   Accelerating project with goal of completing feasibility study within the year and beginning commercial production by the end of 2027

█ LOTTE Chemical Basic Materials President Hwang Jin-koo (Hydrogen Energy Business Director), “Based on our global business capacities and operational knowhow

    for overseas production bases such as in Malaysia, we will contribute to promoting Korea’s hydrogen economy and achieving carbon neutrality

    through omni-directional cooperation”

LOTTE Chemical, Samsung Engineering, POSCO Holdings, and SEDC Energy entered an MOU with Sarawak Energy Berhad regarding a 900 MW hydrogen power-based regenerative power supply for the clean hydrogen business in Sarawak, Malaysia as it begins its business in earnest.

LOTTE Chemical, Samsung Engineering and POSCO Holdings, and Malaysia's SEDC Energy (Sarawak Economic Development Corporation Energy) and Sarawak Energy Berhad announced on the 8th that they entered an MOU (Memorandum of Understanding) for cooperating in hydrogen power-based regenerative power supply for the ‘Malaysia Sarawak H2biscus Clean Hydrogen Project’ on the 7th.

The MOU ceremony held at Seoul Jamsil LOTTE Hotel World was attended by LOTTE Chemical Basic Materials President Hwang Jin-koo (Hydrogen Energy Business Director), Samsung Engineering Vice President Jung Joo-sung (Management Support Director), POSCO Holdings Vice President Yoo Byung-ok (Eco-friendly Future Materials Team Leader), SEDC President Robert Hardin, Sarawak Energy Berhad Commissioner Sharbini Suhaili, and Deputy Minister of Trade, Industry and Energy Park Il-joon, Sarawak Governor Abang Johari Openg, and Malaysian Ambassador to Korea Datuk Lim Juay Jin.

Since LOTTE Chemical, Samsung Engineering, and POSCO Holding signed an MOU to construct a partnership for the Sarawak Clean Hydrogen Project with SEDC Energy in January, this MOU for cooperating in regenerative power supply with Sarawak Energy Berhad will accelerate the said project.

With this MOU, the five companies agreed to examine preparations for infrastructure such as transformers, power lines, etc. and jointly research stable power supply plans for the H2biscus Project that will use at least 900 MW of power. Furthermore, based on the research results, the project feasibility study that is currently being conducted will be completed within the year and will proceed with the project with the goal of commercial production by the end of 2027.

This project is expected to contribute hugely in achieving Korea’s carbon neutrality goals and in promoting the hydrogen economy. The clean hydrogen to be produced through the Sarawak Project will be at a scale of 200,000 tons, and excluding 7,000 tons of green hydrogen to be used in Malaysia, the remaining amount will be shipped and used in Korea as ammonia. The three companies of LOTTE Chemical, Samsung Engineering, and POSCO Holdings plan to continuously develop overseas clean hydrogen projects and take the lead in implementing clean hydrogen in Korea.

LOTTE Chemical Basic Materials President Hwang Jin-koo commented, “I would like to thank participating companies for their efforts and the support of the local government for building the hydrogen infrastructure,” while adding, “Based on our global business capacities and operational knowhow for overseas production bases such as in Malaysia, we will contribute to promoting Korea’s hydrogen economy and achieving carbon neutrality through omni-directional cooperation”

Meanwhile, LOTTE Chemical established a plan to invest a total of 6 trillion KRW by 2030 to produce, distribute and utilize 1.2 million tons of clean hydrogen to achieve revenue of 5 trillion KRW as it expands cooperation with relevant companies. Based on its core capacities such as large-scale consumers, large supply chain, and eco-friendly technologies, it plans to produce 1.2 million tons of by 2030 and supply 600,000 tons for generators, 450,000 tons for fuel cells and hydrogen gas turbines, and 150,000 tons for transportation.