SAMSUNG E&A, a leading total solutions provider for the global energy sector, announced that it has secured its first contract in the Sustainable Aviation Fuel (SAF) market. The company will design, construct, and commission a biorefinery capable of producing SAF, Renewable Diesel, and Hydrogenated Vegetable Oil (HVO) to meet the rising demand for sustainable fuels in the aviation and transportation industries, according to the press release.
The Engineering, Procurement, Construction, and Commissioning (EPCC) contract, valued at $955 million, was awarded by Enilive S.p.A. on behalf of a joint venture comprising PETRONAS Mobility Lestari Sdn. Bhd. (PMLSB), a subsidiary of PETRONAS, Enilive, and Euglena Co., Ltd. The official contract signing is expected by the end of January 2025.
Located within PETRONAS’ Pengerang Integrated Complex (PIC) in Johor, Malaysia, the new biorefinery will process approximately 650,000 tonnes of raw materials annually. The facility will produce SAF, HVO, and bio-naphtha, utilizing waste and residue feedstocks, including used vegetable oils, animal fats, and other biomass. In the mid-term, the facility will explore using microalgae oils.
This project marks SAMSUNG E&A’s debut in the SAF market, positioning the company at the forefront of eco-friendly energy solutions that can substantially reduce carbon emissions. The growing demand for SAF is driven by regulatory changes in key global markets. For instance, the European Union will mandate at least a 2% SAF blend in aviation fuel starting next year. Singapore plans to implement a 1% SAF blending requirement by 2026, while South Korea is set to follow suit by 2027, with gradual increases thereafter.
SAMSUNG E&A’s deep experience in Malaysia, where it has completed over ten projects, will be crucial in ensuring the successful delivery of this biorefinery. The company plans to leverage its expertise in modularization and automation, collaborating closely with the client and technology partners to achieve optimal project outcomes.
Hong Namkoong, President and CEO of SAMSUNG E&A, expressed confidence in the project, saying, “With our accumulated experience and technology in Malaysia, we expect stable performance. This SAF project is the first step towards expanding our presence in the carbon-neutral, eco-friendly sector.”
Earlier this year, SAMSUNG E&A rebranded from SAMSUNG Engineering to reflect its evolving focus on energy transition. The company has outlined a long-term strategy to address societal challenges through technology, with a strong emphasis on hydrogen, carbon neutrality, and SAF.
This project underscores SAMSUNG E&A’s commitment to advancing the global transition to cleaner, more sustainable energy sources.
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