Samsung E&A Secures $955 Million Deal to Build Biorefinery in Malaysia, Entering SAF Market

Samsung E&A Co., the construction and engineering arm of South Korea’s Samsung Group, has secured a $955 million contract to build a biorefinery plant in Malaysia. Enilive S.p.A., a key member of the Phoenix Biorefinery Project joint venture, awarded the project, including Petronas Mobility Lestari Sdn Bhd and Euglena Co. The contract value represents 13.6% of Samsung E&A’s 2023 revenue. 

The biorefinery will generate Sustainable Aviation Fuel (SAF) along with other biofuels, including Renewable Diesel and Hydrogenated Vegetable Oil (HVO), to address the rising demand from the global aviation and transportation industries. This marks Samsung E&A’s initial entry into the SAF sector, aligning with its commitment to supporting the global energy transition and expanding its portfolio in sustainable energy solutions.

The biorefinery will be constructed in Pengerang, located within PETRONAS’ Pengerang Integrated Complex (PIC) in Johor, Malaysia. Once completed, the plant will process approximately 650,000 tons of raw materials annually, including waste cooking oil, palm oil, animal fats, and other bio-based feedstocks. 

These inputs will be used to produce Sustainable Aviation Fuel (SAF), Hydrogenated Vegetable Oil (HVO), and bio-naphtha, addressing the increasing global demand for low-carbon energy solutions.

Samsung E&A will undertake the engineering, procurement, construction, and commissioning (EPCC) of the biorefinery’s key facilities. The company expects to officially sign the $955 million contract by January 2025, following the Letter of Award from Enilive S.p.A., which leads the Phoenix Biorefinery Project joint venture alongside PETRONAS Mobility Lestari Sdn Bhd and Euglena Co. The project represents Samsung E&A’s debut in the SAF EPC market, a critical sector in the global energy transition.

SAF, derived from bio-based feedstocks such as used cooking oil and animal fats, has emerged as a promising eco-friendly alternative to traditional fossil fuels in the aviation industry. Its adoption reduces carbon emissions, making it a vital component of decarbonization initiatives worldwide. Countries like the European Union and Singapore are setting mandates for SAF blending in aviation fuels, signaling continued growth in this sector.

Hong Namkoong, President and CEO of Samsung E&A highlighted the strategic importance of this project for the company’s future. “By successfully executing our first SAF project, we aim to solidify our position in the carbon-neutral and eco-friendly energy market,” he stated. 

He further emphasized that the company’s expertise and experience in Malaysia, a key Asian market, will ensure stable project execution and contribute to advancing global sustainability goals.

Korea is also planning to introduce SAF blending requirements starting in 2027, further driving demand for sustainable aviation fuel. Samsung E&A, leveraging over a decade of project experience in Malaysia and its advanced engineering capabilities, aims to expand its presence in the global SAF EPC market.