By Marlynda Meraw
KUCHING, Jan 15: Bintulu, recognised as Malaysia’s liquefied natural gas (LNG) powerhouse is surfacing as Sarawak’s low-carbon industrial hub as the State accelerates the integration of policy, technology, and global partnerships to decarbonise heavy industry.
According to insights from the World Economic Forum (WEF) January 2026 white paper “Industrial Transformation in ASEAN: A Cluster-Driven Model for Regional and Global Collaboration”, its case study on Bintulu’s transformation reflects a cluster-based approach that aligns industrial competitiveness with emission reductions, leveraging Sarawak’s existing energy infrastructure and natural geological advantages.
Sarawak’s ambition to place Bintulu as a clean industrial anchor is underpinned by the Post Covid-19 Development Strategy (PCDS) 2030, where environmental sustainability stands alongside economic prosperity and social inclusivity as one of the State’s three core pillars, with State-level policies being deployed to translate this vision into operational projects.
Central to the transition is the Sarawak Energy Transition Policy (SET-P), which outlines long-term targets from 2030 to 2050 across seven pillars: renewable energy, clean hydrogen, carbon capture, utilisation and storage (CCUS), natural gas, energy efficiency, low carbon mobility, and alternative energy.
Complementing this, Sarawak is preparing to introduce a carbon levy aimed at incentivising emissions reductions among high-emitting industries while signalling the State’s readiness to attract green and transition-focused investment.
Hydrogen has emerged as a cornerstone of Bintulu’s low-carbon strategy. Guided by the Sarawak Hydrogen Economy Roadmap (SHER), the State is developing the Sarawak Hydrogen Hub in Bintulu to anchor large-scale projects such as H2ornbill and H2biscus; initiatives which are intended to position Sarawak as a regional clean hydrogen production and supply hub, aligned with Malaysia’s National Energy Transition Roadmap (NETR).
Beyond industrial use, hydrogen is also being assessed for public transport decarbonisation. A feasibility study commissioned through the Bintulu Development Authority (BDA) is examining the deployment of hydrogen-powered autonomous rail transit (ART) systems and buses as part of a broader effort to reduce transport-related carbon emissions in the industrial corridor.
In parallel, Sarawak is advancing its role in carbon capture and storage (CCS) by leveraging depleted hydrocarbon reservoirs and saline aquifers.
The State-owned oil and gas company, Petroleum Sarawak Bhd (PETROS), is leading CCUS development in areas such as Samalaju, with the Kasawari CCS Project serving as a key reference point. The project enables the commercialisation of a high-CO₂ gas field and marks Malaysia’s first large-scale carbon dioxide injection initiative.
PETROS is teaming up with partners in Singapore and Japan to create cross-border structures that enable international oil companies to support and finance decarbonisation initiatives.
Sarawak’s State Secretary Datuk Amar Mohamad Abu Bakar Marzuki said the development of the Bintulu industrial cluster reflects the State’s strategic intent to advance clean industrial growth, with hydrogen and carbon capture projects progressing towards commercial scale as part of a broader effort to build an integrated ecosystem that attracts international partners, supports the energy transition and strengthens the State’s long-term economic competitiveness.
Bintulu serves as the State’s primary energy export centre, hosting a dense concentration of petrochemical, manufacturing, and energy facilities supported by established port and pipeline networks. The industrial depth positions the hub as a strategic testbed for scaling low-carbon solutions across the Association of Southeast Asian Nations (ASEAN). – DayakDaily
This article is based on publicly available insights from the World Economic Forum’s January 2026 white paper “Industrial Transformation in ASEAN: A Cluster-Driven Model for Regional and Global Collaboration”. The report’s findings and interpretations do not necessarily represent the views of the World Economic Forum or its members, partners or other stakeholders.
