Samsung E&A has announced its entry into the sustainable aviation fuel (SAF) market with a $955m contract to construct a biorefinery in Malaysia with oil giant Petronas.
The company received a letter of award for the engineering, procurement, construction and commissioning (EPCC) work of the biorefinery project from Enilive on behalf of a joint venture (JV), including Petronas Mobility Lestari, Enilive, and Euglena.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The contract is expected to be officially signed by the end of January 2025.
Set within PETRONAS’ Pengerang Integrated Complex in Johor, Malaysia, the biorefinery will process approximately 650,000t per year of raw materials to produce SAF, hydrogenated vegetable oil, and bio-naphtha.
The adoption of waste and residue feedstocks aligns with global efforts to reduce carbon emissions.
The biorefinery is expected to utilise various biomass sources, including used vegetable oils, animal fats, and other biomass resources such as microalgae oils in the mid-term.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSamsung E&A president and CEO Hong Namkoong said: “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.
“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.”
With over ten projects executed in Malaysia, Samsung E&A plans to apply its modularisation and automation technologies to the biorefinery project.
Regulatory measures worldwide, such as the European Union’s mandate for 2% SAF blends in aviation fuel and similar initiatives in Singapore and South Korea, are driving the growth of the SAF market.
