Sarawak’s Green Hydrogen Ambitions: What it Means for Southeast Asia

Picture: PATA.org

In an article by Eco Business, Christopher Len analyzes Sarawak’s mission to make Malaysia a leading hydrogen economy.

In recent years, the Malaysian federal government and Sarawak have been pushing the green hydrogen agenda. Malaysia’s National Energy Policy (2022-2040) noted hydrogen as having new economic value, that it can be used to reduce carbon emissions, and that Sarawak can be turned into a hydrogen export hub to generate income. Malaysia’s National Energy Transition Road (NETR) designated hydrogen as one of the six energy transition levers and set a 2050 target to phase out the highly pollutive grey hydrogen, produce 2.5 million tonnes of green hydrogen annually and establish three low-carbon hydrogen hubs.

The country’s Hydrogen Economy and Technology Roadmap, launched in October 2023, projected a revenue of up to RM12.1 billion (US$2.7 billion) in 2030 and listed an ambitious target to make Malaysia a leading hydrogen economy by 2050 where it will become a major hydrogen exporter in the Asia-Pacific, be able to generate over RM400 billion (US$87.8 billion), create 200,000 jobs while enabling the country to achieve up to 15 per cent reduction in greenhouse gases emissions.

Sarawak’s interest in green hydrogen is twofold. First, Sarawak Premier Abang Johari strongly believes that hydrogen’s versatility gives it the potential to decarbonise various local economic sectors. Second, its export strategy is important to achieving the state’s goal of High Income Status by 2030. The state has advanced this agenda in recent months. In early June, Sarawak launched Southeast Asia’s first electrolyser assembly-distribution facility (SEA-DF). These are electrolysis systems using electricity to split water into hydrogen and water and the company will start exports by year-end.