Samsung E&A announced on the 10th that it has signed the main contract for the bio-refinery plant project in Malaysia.
Samsung E&A stated in its announcement that it signed contracts for the "Pengerang Biorefinery" and the "New Biorefinery Project" in Malaysia on the 9th. The contract size is approximately 1.38 trillion won (about $950 million), comprising a head office portion of about 817.6 billion won and a corporate contract portion of 564.3 billion won. Samsung E&A had previously announced on the 11th of last month that it had received the letter of award (LOA) for this project.
The project, which is being constructed in the Pengerang area of Johor state in southern Malaysia, is an eco-friendly plant construction project that will produce 650,000 tons of sustainable aviation fuel (SAF), biodiesel, and bio naphtha annually. Samsung E&A will perform the entire process, including design, procurement, construction, and commissioning.
With participation in this project, Samsung E&A will make its first entry into the SAF market, a new energy transition business. SAF is aviation fuel produced from bio materials such as waste cooking oil and palm oil, which can significantly reduce carbon emissions and is gaining attention as the next generation of eco-friendly energy sources.
A Samsung E&A official noted, "We plan to successfully execute the project by utilizing our extensive experience gained from completing over ten projects in Malaysia, along with our differentiated technologies such as modularization and automation, while also collaborating with clients and technology companies. By successfully executing the company's first SAF project, we aim to expand our presence in the eco-friendly carbon neutrality sector in the future."