3 Korean, 2 Malaysian energy companies to work on clean hydrogen production project

Industry

Published: 08 Sep. 2022, 14:00

3 Korean, 2 Malaysian energy companies to work on clean hydrogen production project

Executives of Lotte Chemical, Samsung Engineering, Posco Holdings, Sarawak Energy Berhad and Sarawak Economic Development Corporation Energy take a photo after signing an agreement to cooperate on a clean hydrogen production project Wednesday in southern Seoul. [LOTTE CHEMICAL]

Three Korean companies and two Malaysian energy companies have agreed to cooperate on a clean hydrogen production project.

Lotte Chemical, Samsung Engineering and Posco Holdings signed a memorandum of understanding with Sarawak Energy Berhad on Wednesday. The three Korean companies already signed the agreement with Sarawak Economic Development Corporation Energy in January.

Through the project, named H2biscus, the five companies aim to produce 200,000 tons of clean hydrogen in Sarawak, the largest state in Malaysia, starting end of 2027. Seven thousand tons will be used in Malaysia while the remainder will be shipped to Korea in the form of ammonia.

The project needs at least 900 megawatts of electricity to proceed, and the five companies will conduct joint research on finding ways to secure them stably and other infrastructures such as power transmission facilities.

"We highly appreciate the efforts of participating companies and the Malaysian government for the construction of hydrogen infrastructure," said Hwang Jin-koo, president of Lotte Chemical's basic material business. "Lotte Chemical will contribute to the Korean government's push for carbon neutrality based on our know-how on operating foreign plants."

Lotte Chemical earlier in the year said it will spend 6 trillion won on its hydrogen business by 2030 to produce 1.2 million tons of hydrogen. It aims to generate 5 trillion won ($3.6 billion) of revenue from the hydrogen business.

The five companies signed the agreement Wednesday with executives of each company, Park Il-jun, the second vice minister of trade, industry and energy, and Abang Johari Openg, governor of Sarawak, in attendance.

BY SARAH CHEA [chea.sarah@joongang.co.kr]