‘I took the risk’: S’wak’s early hydrogen investment pays off as tech drives down costs — Premier

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By Doreen Ling

KUCHING, June 20: Sarawak’s decision to opt for hydrogen six years ago has proven to be the right move, given the fact that the cost to produce it is becoming more competitive compared with fossil fuels.

According to Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, when he first mentioned that the State would delve into a hydrogen economy, he was met with scepticism on whether it could be accomplished due to the high cost of producing hydrogen.

“But I took the risk; I feel that technology will keep evolving and enable the price of hydrogen to be competitive with other energy sources—it was just a matter of six years.

“Today, if you look into the price of crude oil and hydrogen, we find that the price is more or less the same, if not, competitive with diesel,” he said at the Natural Resources and Environment Board (NREB) Service and Award Night 2026 at the Unit for Other Religions (Unifor) Complex here on Friday (June 19) which was broadcast live by the Sarawak Public Communication Unit (Ukas).

During the dinner, he said that research being undertaken in China requires only one kilowatt-hour of energy to produce one kilogram of hydrogen.

“That means that the cost of producing hydrogen will be very competitive, maybe cheaper than fossil fuel. This is the trend today. Sarawak has opted for hydrogen, and I think it was the correct decision we took six years ago,” he said.

At the same time, he said that Sarawak’s move to transition from diesel generator sets to solar-powered systems in rural areas through the Sarawak Alternative Rural Electrification Scheme (Sares) proved right, especially amid rising diesel prices due to global supply chain disruptions and geopolitical conflicts.

“We are fortunate. Today, our rural areas are not affected by diesel, and they have electricity, meaning that when we decided to implement solar, it has become a very positive outcome.

“When diesel prices went up, it convinced us that our decision was correct,” he said.

Meanwhile, he said that Sarawak being recognised as a petro-electro State is unique as there are very few places in the world that can share that recognition.

“The Middle East is within the category of a petro state, but they have no electro. Japan and China are electro-states because they depend on electricity.

“But Sarawak is petro-electro—we have both. That is what makes us unique, and we are among the few. That is why we have a lot of scientists from overseas coming here, looking into the possibility of sharing knowledge and information,” he said.

Also present were Deputy Premier, Datuk Amar Dr Sim Kui Hian; Deputy Sarawak Secretary (Administration), Felicia Tan Ya Hua, representing the Sarawak Secretary, Datuk Amar Mohamad Abu Bakar Marzuki; Deputy Minister for Urban Planning, Land Administration, and Environment, Datuk Len Talif Salleh; Deputy Minister for Energy and Environmental Sustainability, Datuk Dr Hazland Abang Hipni; Sarawak State Attorney-General, Dato Sri Saferi Ali; and Controller of Environmental Quality NREB Sarawak, Datu Jack Liam. — DayakDaily

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