By Karen Bong
KUCHING, Aug 25: Under the visionary leadership of Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, Sarawak is taking bold strides in building a hydrogen economy as a key pillar of its long-term sustainable energy strategy.
Anchored by the Sarawak Hydrogen Economy Roadmap, Sarawak’s strategic initiatives are unlocking hydrogen’s potential to decarbonise hard-to-abate sectors such as heavy industry, shipping, and aviation.
Sarawak’s geographic proximity to major Asian markets further strengthens its role as a competitive player in the global hydrogen value chain.
As the world transitions towards net zero, Sarawak is aligning itself with international clean energy trends through pioneering green hydrogen projects. With a clear policy direction, sustainable infrastructure, and ambitious goals, Sarawak is well-positioned to lead the global shift to a low-carbon future advancing both national priorities and its own aspiration of becoming a developed, green economy by 2030.
Pioneering hydrogen initiative
Sarawak made history as the first region in Southeast Asia to develop an integrated hydrogen production plant and refuelling station in 2019, a bold leap towards a cleaner, more sustainable energy future.
The pilot facility, developed by Sarawak Energy Berhad (Sarawak Energy) at a cost of RM16 million, is located at Sarawak Energy’s Western Region Office in Bintawa, Kuching, and marked a significant milestone in Sarawak’s ambition to lead in renewable energy innovation.
The station is equipped with hydrogen production units called electrolysers and a dedicated refuelling facility, developed to support the State’s introduction of hydrogen-powered transportation.
Among the first to benefit from the station were Sarawak’s three units of hydrogen fuel cell buses operated by Sarawak Metro. Sarawak Energy’s two Hyundai Nexo hydrogen fuel cell vehicles joined its corporate fleet, comprising among others, 22 electric-powered vehicles and six electric scooters, as the company ramped up efforts to decarbonise mobility.
The hydrogen buses, operated by the Sarawak Metro, represents a game-changer for public transportation in the region. Following updates to regulations by the Road Transport Department, Sarawak was the first region in Southeast Asia to have hydrogen fuel cell-powered vehicles legally operating on public roads.
Sarawak’s hydrogen initiative is part of the State government’s broader push to develop a green hydrogen economy, in line with its strategic vision for sustainable development and energy transition.
With this pioneering project, Sarawak has positioned itself at the forefront of hydrogen technology in the region, offering a model for others to follow in the shift towards low-carbon mobility and cleaner energy solution.
Multi-fuel stations
In a bold move to strengthen Sarawak’s sustainable energy infrastructure, Sarawak Economic Development Corporation (SEDC) Energy launched Malaysia’s first Multi-Fuel Station (MFS) at Darul Hana in 2022. This flagship facility, the first of its kind in the nation, integrates hydrogen refuelling and electric vehicle (EV) charging alongside conventional petrol and diesel, with a daily hydrogen production capacity of 150kg.
Building on this milestone, construction of a second flagship MFS commenced at MJC Batu Kawa at the end of 2023. Operated under a Company Owned, Dealer Operated (CODO) partnership, Koperasi Bomba dan Penyelamat Malaysia (KOBOPEM) Sdn Bhd was officially appointed to run the PETROS-owned station, which opened its doors to the public on August 16, 2025.
Today, Sarawak’s clean energy backbone is further supported by 10 fully operational standard MFS located across strategic towns, including Daro, Kanowit, Kuala Matu, Brooke Drive (Sibu), Selangau, Tatau, Kapit, Sungai Asap, and Jepak.
Looking ahead, SEDC Energy is set to develop four more flagship MFS along the Pan Borneo Highway by 2030, strategically positioned in Bintulu, Miri, Sibu, and Sri Aman. These projects form part of a wider strategy to expand access to clean energy while accelerating the adoption of green mobility solutions.
In addition, three standard or non-flagship MFS are under construction, with more than 40 additional sites in the pipeline to further expand Sarawak’s clean energy network. Altogether, six flagship MFS are planned, reinforcing Sarawak’s hydrogen value chain and strengthening its role in Malaysia’s transition to cleaner fuels.
By scaling up this network, SEDC Energy not only aims to drive innovation and support the shift to renewable energy but also to deliver tangible benefits to consumers and the wider economy, while firmly positioning Sarawak as a leader in Malaysia’s clean energy transformation.
New legislation to regulate hydrogen
The Sarawak Legislative Assembly (DUS) had on November 11, 2024 unanimously passed the Distribution of Gas (Amendment) Bill 2024, marking a significant step toward establishing a comprehensive legal framework for hydrogen distribution in Sarawak.
The Bill aims to regulate the production, storage, transportation, and delivery of hydrogen generated in Sarawak, utilising both locally produced and imported feedstocks. It also covers the infrastructure used for hydrogen generation and storage, as well as the transportation network for distribution, including provisions for hydrogen exports.
A key highlight of the Bill is the expansion of the definition of ‘gas’ in the Principal Ordinance to specifically include hydrogen, allowing for targeted regulation. A new Part IVA will be introduced to govern all hydrogen-related activities. The Minister responsible for energy and environmental sustainability will oversee the implementation of this framework, with the administration led by a designated regulator and supported by appointed officers.
This regulator will have the authority to issue licenses for various hydrogen-related activities, including its sale, retail, and use in sectors such as transportation, electricity generation, and industrial processes. The regulator’s role will also include fostering economic growth in Sarawak’s hydrogen sector, attracting investment, and enhancing export opportunities.
The Bill also introduces stringent penalties for unauthorised hydrogen-related activities and grants the Sarawak Cabinet the authority to impose state-specific rates, levies, taxes, or charges on all aspects of hydrogen-related operations, including feedstock imports, facility management, sales, exports, distribution, and transportation.
Additionally, new provisions empower the regulator with enforcement authority and provide protections for both the regulator and appointed officers, similar to those afforded to directors or authorised persons.
Following this amendment, Sarawak is positioned to regulate hydrogen activities effectively, demonstrating a strong commitment to advancing its hydrogen economy and creating a transparent, investor-friendly environment for the growth of hydrogen and related clean energy industries.
H2ornbill and H2biscus
At the heart of this push is the Sarawak Hydrogen Hub in Bintulu, developed by SEDC Energy Sdn Bhd, a subsidiary of the Sarawak Economic Development Corporation (SEDC), in collaboration with global energy giants from Japan and South Korea.
Sarawak is advancing its green hydrogen initiatives through partnerships totalling USD4.2 billion, focusing on the development of hydrogen plants and infrastructure within the Sarawak Hydrogen Hub in Bintulu and the Rembus Depot near Kuching.
These projects are expected to firmly establish Sarawak as Southeast Asia’s first hydrogen-driven economy by 2027.
Two large-scale green hydrogen projects, H2ornbill and H2biscus, form the cornerstone of the Sarawak Hydrogen Hub.
H2ornbill, a joint venture between SEDC Energy, ENEOS Corporation, and Sumitomo Corporation of Japan, will see the construction of two hydrogen-producing plants focused on generating 90,000 tonnes of clean hydrogen annually, with 2,000 tonnes allocated for local use. The hydrogen will be converted into methylcyclohexane (MCH) for export to Japan.
H2biscus, developed in partnership with Samsung Engineering, Posco Holdings, and Lotte Chemical of South Korea, aims to deliver 7,000 tonnes of green hydrogen for domestic consumption and produce 600,000 tonnes of blue ammonia, 630,000 tonnes of green ammonia, and 460,000 tonnes of green methanol for international markets.
Both projects are located within the SEDC Petchem Industrial Park (SPIP) in Tanjung Kidurong, Bintulu, and are expected to begin commercial production by 2028, aligning with global clean energy demand.
Sarawak H2 Hub
Bintulu is chosen as the hub’s location due to the existing petrochemical industrial complex, which has the advantage of being able to utilise existing facilities for the MCH production that will be used to transport hydrogen to Japan.
To support these mega projects, SEDC Energy is also forming a joint venture with Gentari Sdn Bhd, the clean energy arm of Petroliam Nasional Berhad (PETRONAS), to build shared hydrogen infrastructure—including pipelines, processing units, and export terminals.
This centralised facility, to be known as the Sarawak H2 Hub, will streamline upstream hydrogen production and downstream derivatives like ammonia and MCH, following a plug-and-play model to attract investors and off-takers.
“The hydrogen hub is more than just a production site. It’s an ecosystem—mirroring the Silicon Valley model where multiple players can plug in and access shared resources,” said Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He emphasised that these investments will not only boost Sarawak’s Gross Domestic Product (GDP) through hydrogen exports but also position the region as a global leader in clean energy.
“We will export 240,000 tonnes of hydrogen annually to Japan and South Korea while retaining 9,000 tonnes for domestic industries. The export potential allows us to impose sales tax, contributing significantly to Sarawak’s revenue.”
He is confident that the projects will catalyse the growth of hydrogen-based industries in Bintulu, including the manufacturing of electrolysers, fuel cells, and green chemicals, that would unlock downstream industrial potential.
Green methanol project
On January 14, 2025, Sarawak reached another significant milestone in its journey to becoming a regional energy powerhouse as Sarawak Petchem Sdn Bhd celebrated the successful sail away of 20,000 metric tonnes of methanol bound for China.
Abang Johari expressed his gratitude to the project’s key vendors, including Samsung, for their role in constructing the plant using a modular, ready-to-install approach—an innovative method that ensured high quality while significantly reducing costs.
The project also involved the construction of a new three-kilometre export jetty, a feat once thought improbable. Today, this state-of-the-art facility enables direct loading of methanol onto vessels, enhancing Sarawak’s logistical capabilities and positioning the State as a reliable supplier for global markets.
“With today’s shipment, Sarawak Petchem is turning the page to an exciting new chapter—the Green Methanol Project,” Abang Johari announced.
Underscoring the global demand for low-carbon fuels, he noted that methanol and ammonia are increasingly sought after to power ships and reduce greenhouse gas emissions.
“Green methanol is created by combining captured carbon with hydrogen produced from renewable energy sources such as hydro and solar,” he explained.
He commended Sarawak Petchem for taking the lead in this next-generation initiative, which will serve as a model of Sarawak’s commitment to the global green energy transition.
The Green Methanol Project will utilise water electrolysis powered by renewable energy, alongside captured carbon dioxide as feedstock, to produce sustainable methanol. This green methanol, which can be used as marine fuel, will contribute significantly to reducing CO₂ emissions—an essential step in combating climate change.
“This initiative reflects our commitment not just to meet today’s energy demands, but to build a sustainable, climate-resilient future for Sarawak,” he said.
Sarawak’s rise in the global petrochemical industry began with the launch of the RM7 billion Sarawak Methanol Complex on July 22, 2024 — the State’s first petrochemical project and a cornerstone of its industrial transformation.
The complex is capable of producing up to 1.75 million metric tonnes of methanol annually, or around 5,000 tonnes per day. The methanol is being commercialised in collaboration with PETRONAS, targeting markets in Asia and Europe.
Even during its construction phase, the project created significant employment opportunities for Sarawakians, and it is expected to continue contributing to job creation and economic development in the State.
Owned and operated by Sarawak Petchem, the state-of-the-art facility incorporates large-scale modular construction and Malaysia’s first jetty wave screen technology—an engineering innovation designed to enhance port safety and efficiency.
The ceremony also witnessed the exchange of documents between Sarawak Petchem and Petroleum Sarawak Berhad (PETROS) regarding the supply of natural gas to the methanol complex and the development of Sarawak Petchem’s upcoming low-carbon ammonia and urea plant.
Backed by renewable hydropower
Sarawak’s geographical advantages are clear: abundant hydro and solar power resources, coupled with natural gas reserves, put the State in a strong position to meet the growing global demand for clean hydrogen.
Sarawak has already made strides in this area, with the current capacity to generate almost four gigawatts (GW) of renewable energy. Abang Johari has set an ambitious target to have a generation capacity of 10GW by 2035, further enhancing the Sarawak’s energy infrastructure to produce hydrogen sustainably and affordably.
A critical enabler of Sarawak’s hydrogen vision is its abundant renewable hydropower, particularly from Batang Ai, Bakun, and Murum dams, which ensures that hydrogen production is truly clean and sustainable.
This has been a major draw for investors, especially Japanese and South Korean companies, seeking cost-effective and low-carbon hydrogen supply chains.
As global demand for hydrogen accelerates, Sarawak is positioning itself to become a strategic supplier to key markets in Asia. With both H2ornbill and H2biscus entering the Front-End Engineering Design (FEED) phase, and infrastructure rapidly taking shape, the Bintulu Hydrogen Hub is on track to be fully operational by 2027.
“Hydrogen is the future. With the combined strength of our global partners, strategic planning, and our renewable energy base, Sarawak will be a pioneer in the hydrogen economy,” Abang Johari remarked.
Supporting domestic needs: Rembus Depot
In parallel, SEDC Energy is developing a hydrogen production plant and refuelling station at the Rembus Depot in Kota Samarahan to power the Kuching Urban Transportation System (KUTS).
Scheduled for completion in 2025, this RM400 million to RM500 million Rembus Hydrogen Plant (Rembus H2 Plant) project will produce 1,900 tonnes of hydrogen per year. The Plant is the product of a strategic collaboration between SEDC Energy and Sarawak Metro Sdn Bhd.
In a significant move, SEDC Energy has signed a development agreement with Sarawak Metro to establish the hydrogen production facility and refuelling station, both crucial to supporting the KUTS, including the Autonomous Rapid Transit (ART) system and hydrogen-powered buses.
The development of the Rembus Hydrogen Plant represents a significant step toward Sarawak’s vision of becoming a leader in green energy, with the plant marking the first hydrogen-powered public transport initiative in Malaysia.
Expected to be commissioned by the second quarter of 2026, the plant will help support the three main lines of KUTS—the Blue (Rembus to Hikmah Exchange), the Red Line (Kuching Sentral to Pending) and the Green Line (Pending to Santubong).
The plant will play a vital role in powering the first fleet of 38 ART vehicles and 55 hydrogen buses that will operate on the KUTS’s first line.
It will also contribute to Malaysia’s commitment to achieving Net Zero by 2050, acting as a catalyst for the country’s sustainable mobility goals. Beyond the immediate benefits to public transport, the plant is also a key component of Sarawak’s broader hydrogen strategy.
SEDC Energy is tasked with building the hydrogen value chain for the State, with the plant playing a central role. The facility will not only produce hydrogen but will also distribute hydrogen fuel for various vehicles and industries, laying the groundwork for a comprehensive hydrogen economy in Sarawak.
The Rembus Hydrogen Plant is on track to meet its 2025 completion target, and once operational, it will help drive Sarawak’s green transition, enabling Sarawak to meet its energy goals and showcase its leadership in the hydrogen economy. As the first of its kind in Malaysia, the Rembus Hydrogen Plant sets the stage for a cleaner, greener, and more sustainable future for Sarawak and the wider region.
Comprehensive development framework
In October 2024, Sarawak unveiled a four-pillar strategy to ensure the effective development of its hydrogen economy. The framework focuses on:
- Legal Framework: Establishing policies, regulations, and governance to guide the hydrogen ecosystem.
- Technical Framework: Deploying state-of-the-art technologies for hydrogen production, storage, and transportation.
- Financial and Business Framework: Attracting investments and creating business models to support sustainable hydrogen ventures.
- Human Resource and Talent Development: Building a skilled workforce and fostering talent in hydrogen-related fields.
Sarawak is demonstrating strong leadership in advancing hydrogen as a key energy source for the future through the implementation of a comprehensive hydrogen roadmap, extending to 2030 and beyond.
ASEAN’s first electrolyser assembly-distribution facility
On June 6, 2024, the State officially unveiled the ASEAN region’s first Electrolyser Assembly and Distribution Facility (SEA-DF) at the Demak Laut Industrial Park, marking a major milestone in the Sarawak’s clean energy agenda.
This advanced facility, a collaboration between SEDC Energy and PETRONAS’ subsidiary Lestari H2GaaS, represents a significant leap in Sarawak’s role in the growing hydrogen energy sector. The SEA-DF is set to revolutionise hydrogen production in Sarawak by delivering advanced electrolysers capable of converting water molecules into hydrogen.
It is a critical component in Sarawak’s strategic push towards achieving a green economy. The facility’s electrolysers are designed to consume less than 40 kilowatt-hours (kWh) of electricity to produce one kilogramme of hydrogen, setting a new global benchmark for efficiency in hydrogen production.
Abang Johari highlighted the significance of this development, stating that the facility would contribute to the local and global energy landscape. He emphasised that this is the first facility of its kind in ASEAN, underscoring Sarawak’s commitment to innovation and its position at the forefront of clean energy solutions in the region.
As part of its ambitious plans, the SEA-DF aims to ramp up its electrolyser production capacity from 50 megawatts (MW) per year to 500 MW per year within the next five years.
The facility is already receiving substantial orders, with three electrolysers set to be shipped overseas by the end of the year. This initial success is a clear indication of the strong global demand for electrolysers, as the current global capacity for production remains limited.
“We are seeing significant demand for electrolysers, and with increased capacity at this facility, Sarawak is poised to meet this growing global need. Our target is to produce up to 500 MW of electrolysers per year, with the initial 50 MW catering to the local market in Sarawak.”
The facility’s ability to deliver high-quality electrolysers will not only enhance Sarawak’s energy security but also create high-value job opportunities, stimulate the local economy, and attract further investments in clean technologies.
In addition to ramping up electrolyser production, Abang Johari expressed hopes that mass production of electrolysers would lead to a significant reduction in the cost of hydrogen production.
First-of-its-kind hydrogen integrated CCGT Power Plant
A transformative step in Sarawak’s energy journey was marked by the groundbreaking ceremony of the RM2 billion Combined Cycle Gas Turbine (CCGT) Power Plant in Miri, which is set to be operational by 2027. The advanced facility, located at Lutong, Miri, will be the first of its kind in the region, incorporating an innovative blend of 30 per cent hydrogen and 70 per cent natural gas to generate 500MW of electricity.
A key aspect of the Miri CCGT Power Plant’s development is the collaboration with Mitsubishi Heavy Industries (MHI), a global leader in energy technology. MHI has been entrusted with supplying the CCGT power plant, which is designed to utilise hydrogen as part of its fuel mix. This partnership marks the beginning of a deeper collaboration between Sarawak and MHI, particularly in the development of hydrogen technology.
The project also represents a significant milestone for PETROS, Sarawak’s appointed gas aggregator, underscoring its commitment to advancing the State’s energy infrastructure and reinforcing its position as a key player in the green energy sector.
The Miri CCGT Power Plant will employ advanced technology, including a gas turbine with a heat recovery steam generator and steam turbine. This cutting-edge configuration will deliver cleaner, more efficient energy to the Sarawak grid, helping to meet both current and future energy demands in Northern Sarawak.
The facility’s unique hydrogen-natural gas mix is set to be a game-changer in energy generation, providing a cleaner, more sustainable solution to the region’s power needs.
The order for the gas turbine production has been placed with MHI, with manufacturing set to begin in 2026. The turbines are expected to be delivered to Sarawak by mid-year, paving the way for the plant’s commercial operations, which are slated for completion by the end of 2027.
Once operational, the plant will play a pivotal role in strengthening Sarawak’s energy resilience and enhancing energy reliability across the northern part of the State. This initiative is part of Sarawak’s broader strategy to diversify its energy portfolio and reduce its carbon footprint, contributing to the global push for cleaner energy solutions.
Power-to-X projects
Sarawak is taking decisive steps towards diversifying its energy landscape by exploring the potential of the hydrogen industry, with an emphasis on advancing “Power-to-X” projects. These initiatives seek to harness the Sarawak’s abundant renewable energy resources to produce cost-competitive clean hydrogen and other sustainable energy and chemical products, such as synthetic methane and liquid fuels, boosting Sarawak’s economy and positioning it as a key player in the clean energy sector.
Power-to-X projects is a critical part of its strategy to diversify the hydrogen industry. The technology involves using renewable energy to produce hydrogen, which can then be converted into a range of sustainable products, including synthetic methane, green ammonia, and sustainable aviation fuel (SAF). These products can have broad applications in the chemical, aviation, and energy industries.
One significant advancement in this area is Sarawak’s green methanol project under Sarawak Petchem, which marks a milestone in the State’s journey toward leadership in clean energy solutions. This project aligns with the global shift toward cleaner, more sustainable energy sources and has the potential to contribute significantly to Sarawak’s economy by creating new industries and job opportunities.
Abang Johari highlighted the importance of leveraging hydrogen with carbon dioxide to produce synthetic fuels and chemicals, stating, “By combining hydrogen with carbon dioxide, we can produce a range of synthetic fuels and chemicals, including green methanol, SAF, green ammonia, and polyesters. These polyesters can be further processed into green fibres, bottles, or films, contributing to a more sustainable future.”
Overcoming challenges
Despite the promise of these innovations, the journey to a hydrogen-powered future is not without challenges. One of the major obstacles to large-scale hydrogen production is the high cost of production and the significant energy required to convert raw materials into hydrogen.
Abang Johari acknowledged these challenges, but pointed out Sarawak’s advantage in terms of feedstock availability.
“Some countries have failed in hydrogen production because they lack the feedstock. They don’t have hydrogen and must import it, which raises the cost. But Sarawak is blessed with feedstock. We can produce hydrogen from water through hydropower and even generate another form of hydrogen through synthetic gas.”
He further emphasised that Sarawak’s abundant natural resources, such as hydropower, make it uniquely positioned to overcome the challenges faced by other nations in hydrogen production. The current process for producing hydrogen remains expensive, but with economies of scale, the price of electrolysers is expected to decrease over the next five to ten years.
“By achieving mass production, the cost of electrolysers will drop, which in turn will make hydrogen production more affordable. This is a crucial factor in making hydrogen a viable energy source for the future.”
The Sarawak government has also pledged seed capital to support the research of PETRONAS through Iban scientist, Colin Patrick, who is focused on reducing energy consumption in the electrolysis process. This research could potentially lower the energy required to produce hydrogen, further enhancing cost efficiency.
The current energy consumption for hydrogen production stands at less than 40 kWh per kilogramme, and with continued research, it may be reduced to 30 kWh or even 20 kWh. This will result in significant savings in hydrogen production and bolster Sarawak’s competitiveness in the global hydrogen market.
The SEA-DF is also exploring alternative energy sources, including hydrogen-powered electrolysers, as opposed to the current reliance on hydropower. This transition could further optimise the production process and reduce costs.
A long-term strategy for sustainable growth
Sarawak’s hydrogen strategy is designed to extend beyond 2035 and into the year 2050, ensuring long-term sustainability and benefits for future generations.
The State government is committed to driving forward with hydrogen and renewable energy initiatives that will support economic growth, create high-value jobs, and contribute to global efforts to combat climate change.
“Sarawak is poised to play a pivotal role in Malaysia’s clean hydrogen industry, reinforcing our commitment to a greener future,” Abang Johari affirmed, reflecting on the State’s dedication to becoming a leading clean energy hub in the region.
With its abundant natural resources, strategic investments in renewable energy, and commitment to innovation, Sarawak is well on its way to becoming a major player in the global clean hydrogen industry, helping to shape a sustainable energy future for the region and beyond. — DayakDaily
