Samsung E&A secured its first sustainable aviation fuel project, landing a 1.37 trillion won ($955 million) contract to build a bio-refinery in Malaysia. The South Korean engineering firm will construct the facility in Johor’s Pengerang region for a consortium led by Italy’s Eni SpA and Malaysia’s Petronas.
The plant will produce sustainable aviation fuel (SAF), bio-diesel, and bio-naphtha using raw materials like used cooking oil and palm oil. Total annual production capacity is expected to reach 650,000 tons.
The project comes as airlines face mounting pressure to reduce their carbon footprint. The European Union will require at least 2% SAF content in aviation fuel starting in 2024, while Singapore mandates 1% from 2026. South Korea plans similar requirements beginning 2027.
For Samsung E&A, which rebranded from Samsung Engineering earlier this year, the contract marks its entry into the growing SAF market. The company cited its track record of completing over 10 projects in Malaysia as key to winning the bid.
The main contract signing is scheduled for January 2024. The project will be executed through a joint venture that includes Japanese bio-company Euglena alongside Eni and Petronas.
