SAMSUNG E&A has secured a Front End Engineering Design (FEED) contract for a sustainable aviation fuel (SAF) production plant in the United States, marking its full scale entry into the global clean energy market.
The company announced that it signed a FEED contract with DG Fuels, a US based SAF project developer, for the Louisiana SAF Production Project. Under the agreement, SAMSUNG E&A will execute the clean hydrogen production scope, one of two major project packages. The contract is valued at approximately KRW 23 billion (USD 15.7 million) and is expected to be completed within 10 months. Upon successful completion of the FEED phase, the company aims to secure a follow on EPC contract, with the total project value estimated at approximately USD 3 billion (KRW 4.5 trillion).
The project will be located in St. James Parish, Louisiana, and is designed to produce 600,000 tons of SAF annually using locally available waste resources such as agricultural byproducts and woody biomass. SAMSUNG E&A will be responsible for key blue hydrogen facilities, including the Air Separation Unit (ASU), Auto Thermal Reformer (ATR), and carbon dioxide capture systems, as well as green hydrogen facilities based on water electrolysis technology.
With this latest award, following the KRW 1.4 trillion SAF project secured in Malaysia late last year, SAMSUNG E&A has strengthened its presence in the global SAF market. SAF, produced from bio based feedstocks rather than conventional fossil fuels, is gaining momentum as a next generation energy solution due to its significant potential to reduce carbon emissions. As global decarbonization efforts accelerate and governments introduce SAF blending mandates, the market is expected to grow steadily.
SAMSUNG E&A continues to invest in and collaborate on core energy transition technologies, including SAF, carbon capture, hydrogen, ammonia, and LNG, under its E&Able strategy, its future focused business model for the energy transition. These efforts have resulted in multiple clean energy project wins, including a SAF plant in Malaysia, a biodegradable plastics facility in the UAE, FEED work for an eco friendly LNG plant in Indonesia, conceptual design for an LNG plant in North America, and a low carbon ammonia project in the United States.
Commenting on the achievement, Hong Namkoong, President and CEO of SAMSUNG E&A, said, “We will continue to pursue additional opportunities through the successful execution of the FEED phase. This project will further strengthen our footprint in North America and expand our participation in key energy transition sectors such as SAF, hydrogen, and carbon capture.”
Source: Samsung E&A