By Emily Ruran
KUCHING, June 9: Sarawak remains confident of its role as a regional hydrogen hub despite challenges surrounding the transportation and commercialisation of the clean energy source.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said logistics issues could be addressed through various approaches, including ammonia production and hybrid systems.
Speaking to reporters on the sidelines of the Asia Pacific Green Hydrogen Conference and Exhibition (APGH) 2026 today, he said the focus should be on strengthening the hydrogen value chain and reducing production costs.
He elaborated that the cost of hydrogen production has been declining and is becoming more competitive compared with fossil fuels.
“We discussed this in detail because the issue with hydrogen now is logistics, but logistics can be managed through ammonia production, among other methods. Another option is hybrid systems.
“From the logistics point of view, I do not see it as a problem. What is important is the value chain and the cost of producing hydrogen,” he said.
His remarks came amid a report in Nikkei Asia that Sarawak’s hydrogen venture involving local and Japanese investors has been scaled down due to funding constraints and high transportation costs.
The initiative, jointly developed by Sarawak Economic Development Corporation (SEDC) Energy and Japanese companies Sumitomo Corporation and Eneos, was originally planned to produce 90,000 metric tonnes of green hydrogen annually by 2030 for export to Japan.
However, SEDC Energy chairman Tan Sri Abdul Aziz Husain was reported as saying that the original export model was no longer commercially viable because of high transportation costs.
Earlier this year, the Energy Industries Council reported that the H2biscus and H2ornbill projects had reduced their planned production capacities amid market uncertainties.
In another interview with Nikkei Asia, Abang Johari had previously said the projects remain on track and are being restructured to better align with market demand. — DayakDaily
