By Karen Bong
KUCHING, May 22: The development of Sarawak’s hydrogen economy faces several challenges in generating immediate economic returns, primarily due to investor preference for established industries with quicker paybacks, high upfront costs, and the need for a specialised workforce.
Deputy Minister for Energy and Environmental Sustainability, Datuk Dr Hazland Abang Hipni, explained that hydrogen remains a relatively new energy source compared to conventional sectors like oil and gas, which currently form the backbone of Sarawak’s economy.
“As a result, investors are generally more inclined toward established industries that offer faster returns.
“Building the necessary hydrogen infrastructure requires substantial upfront investment. In contrast, traditional industries often benefit from existing infrastructure, allowing for quicker returns,” he said during the question-and-answer session at the Sarawak Legislative Assembly Sitting today in response to a question from Serembu assemblyman Miro Simuh regarding the challenges of developing a hydrogen economy and its near-term economic impact.
Dr Hazland also pointed out that producing clean hydrogen demands specialised technical expertise, which Sarawak is still in the process of developing.
“Establishing a skilled workforce for this sector will take time and significant investment in training programmes and education initiatives,” he added.
Despite these hurdles, Dr Hazland expressed optimism about Sarawak’s future in the hydrogen sector.
“While immediate returns may be modest, these strategic investments are laying the groundwork for Sarawak to become a major player in the global hydrogen economy,” he said.
He highlighted that the global clean hydrogen market—valued at USD1.41 billion in 2021—is projected to grow to USD5.95 billion by 2030, driven by rising demand for clean energy solutions, particularly in sectors like marine and aviation fuel.
Sarawak is well-positioned to capitalise on this growth by leveraging its abundant hydropower resources to produce cost-effective green hydrogen. Its favourable topography gives it a natural advantage in hydroelectricity production, resulting in lower industrial electricity tariffs.
“By using renewable hydropower to drive electrolysis, Sarawak can efficiently and sustainably produce hydrogen from water—without carbon emissions—supporting our clean energy transition,” Dr Hazland said.
He also cited Sarawak’s flagship hydrogen initiatives such as H2biscus and H2ornbill, as well as strategic partnerships with international stakeholders, as proof of the state’s proactive efforts to establish itself as a regional leader in clean hydrogen production.
“These collaborations not only help strengthen technical capabilities but also attract investment, reinforcing Sarawak’s long-term position in the regional clean hydrogen market,” he said. — DayakDaily
