Samsung E&A enters sustainable aviation fuel market with Malaysia biorefinery contract

SAMSUNG E&A, a comprehensive solutions provider for the global energy sector, has announced its acquisition of a significant contract for the development of a biorefinery in Malaysia. This initiative marks SAMSUNG E&A’s inaugural foray into the Sustainable Aviation Fuel (SAF) market, representing a strategic moment as the company broadens its focus amid the global energy transition.

The contract, officially a Letter of Award, pertains to the engineering, procurement, construction, and commissioning (EPCC) of a biorefinery project located within PETRONAS’ Pengerang Integrated Complex (PIC) in Johor, Malaysia. Enilive S.p.A., on behalf of a joint venture comprising PETRONAS Mobility Lestari Sdn. Bhd., Enilive, and Euglena Co. Ltd., awarded the contract, which is valued at approximately USD 955 million. The formal signing of the contract is anticipated by the end of January 2025.

Upon completion, the biorefinery is expected to process around 650,000 tonnes of raw materials annually, facilitating the production of SAF, hydrogenated vegetable oil (HVO), and bio-naphtha. The facility will utilise a variety of feedstocks including used vegetable oils, animal fats, and biomass, with plans to explore microalgae oils in the mid-term.

SAMSUNG E&A’s entry into the SAF market comes at a time when global regulatory frameworks are increasingly favouring eco-friendly fuel options. Countries worldwide are pushing for the adoption of SAF as part of their commitment to reducing carbon emissions. The European Union is set to enforce a requirement for a minimum of 2% SAF blends in aviation fuel starting next year. Singapore is aiming to implement a blending requirement of at least 1% by 2026, while South Korea is scheduled to introduce mandatory SAF blending from 2027, with plans for gradual increases thereafter.

Hong Namkoong, President and CEO of SAMSUNG E&A, emphasised the company’s readiness to implement the project in Malaysia, stating, “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.” The CEO also highlighted the significance of this project by mentioning, “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.”

This contract is part of a broader shift for SAMSUNG E&A, which underwent a rebranding from SAMSUNG Engineering earlier this year to better reflect its evolving focus on sustainable energy solutions. The company has laid out a mid- to long-term strategy that prioritises addressing societal challenges through technological innovation, with an organisational pivot towards energy transition businesses encompassing hydrogen technology, carbon neutrality, and SAF.

As the landscape of the energy industry continues to evolve, SAMSUNG E&A’s project in Malaysia highlights the growing momentum behind biofuels and sustainable aviation initiatives, setting the stage for future advancements in the sector.

Source: Noah Wire Services