Samsung E&A (Seoul, South Korea) has secured a $955 million contract to construct a biorefinery in Malaysia, marking its debut in the Sustainable Aviation Fuel (SAF) market. The project aims to produce SAF, Renewable Diesel, and Hydrogenated Vegetable Oil (HVO) to meet the rising demand for eco-friendly fuels in the global aviation and transportation sectors, leveraging the expertise of all project partners. This venture represents Samsung E&A’s strategic step into the energy transition era.

The company announced it had received a Letter of Award (LoA) for the Engineering, Procurement, Construction, and Commissioning (EPCC) of the biorefinery project from Enilive S.p.A on behalf of a joint venture comprising Petronas Mobility Lestari Sdn. Bhd. (a subsidiary of Petronas), Enilive, and Euglena Co., Ltd. The contract is expected to be formally signed by January 2025.

The biorefinery will be located within the PETRONAS Pengerang Integrated Complex (PIC) in Johor, Malaysia. Once completed, it will process approximately 650,000 metric tons of raw materials annually to produce SAF, HVO, and bio-naphtha. Feedstocks will include used vegetable oils, animal fats, waste from vegetable oil processing, and other biomass such as microalgae oils, which are set to be explored further in the future.

Samsung E&A’s entry into the SAF market highlights its commitment to developing next-generation eco-friendly energy solutions capable of significantly reducing carbon emissions. This contract aligns with global efforts to combat climate change as many countries implement regulations to promote SAF adoption. For example, the European Union will require at least 2% SAF blending in aviation fuel starting next year, while Singapore plans to mandate a 1% or higher SAF blend by 2026. South Korea is also preparing to introduce mandatory SAF blending from 2027, with gradual expansion anticipated in the following years.

Drawing on its extensive experience executing over ten projects in Malaysia, Samsung E&A plans to utilize advanced technologies, including modularization and automation, to deliver the biorefinery. The company will work closely with clients and technology partners to ensure project excellence.

Hong Namkoong, President and CEO of Samsung E&A, emphasized the significance of this project, stating, “By successfully executing our first SAF project in Malaysia, a major market for us, we will strengthen our position in the carbon-neutral, eco-friendly sector.”

This development reflects Samsung E&A’s transformation in line with the energy transition era. Earlier this year, the company rebranded from Samsung Engineering and adopted a long-term strategy of addressing societal challenges through technology, focusing on hydrogen, carbon neutrality, and SAF as core growth areas.