By Shikin Louis & Christine T
KUCHING, Oct 1: Critics are questioning whether Sarawak’s hydrogen projects will have enough customers to make them commercially viable, but Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg says technology can bring production costs down and expand the customer base.
Responding to Global Asia Consulting analyst Samirul Ariff Othman who questioned whether Putrajaya should extend incentives to Sarawak’s hydrogen sector, Abang Johari acknowledged that new projects carry risks but said technological advances could change the cost equation.
“Yes, we take note of that. There is a risk because when you develop something new, there is always an element of risk.
“But with technology, the cost can come down and the customer base can expand,” he told reporters after delivering his keynote address at the Sarawak Corporate Leadership Summit 2026 (SCOPE) held at a local hotel here today.
Abang Johari said the high cost of hydrogen production was partly linked to the expensive electrolysers used to produce the fuel, but improvements in membrane technology could reduce both energy consumption and costs.
“Like a computer, when you have a computer, the cost comes down. The same thing applies to hydrogen. The electrolyser is expensive, but with new membrane technology, the cost can come down,” he said.
He said Sarawak was also looking at developing hydrogen production in clusters, which could further improve efficiency and reduce costs.
Abang Johari said different technologies, including alkaline and proton exchange membrane (PEM) electrolysers, were being developed as the hydrogen industry continued to evolve.
He cited Germany and China as countries that were also returning to hydrogen, saying the technology and its applications continued to develop.
In his keynote earlier, Abang Johari said Sarawak was positioning hydrogen as part of its broader energy transition and efforts to develop new industries based on its renewable energy resources.
He acknowledged that hydrogen was a relatively new industry and therefore carried uncertainties, but said Sarawak needed to assess the risks while continuing to develop the technology and potential market.
The Premier’s remarks came after Global Asia Consulting analyst Samirul Ariff Othman questioned the commercial viability of Sarawak’s hydrogen ambitions, particularly whether there were sufficient customers willing to pay prices that would make the projects viable.
Abang Johari said the key was to continue improving the technology so that production costs could eventually fall and make hydrogen more accessible to a wider market. — DayakDaily
