Premier: Ongoing research to ensure drop in hydrogen production costs, viable energy source soon

KUCHING (Aug 26): Ongoing research will further reduce the cost of hydrogen production, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He expressed confidence that this will enable hydrogen to become a viable energy source in the near future.

“I believe the cost will continue to come down, just as it did with computers,” Abang Johari said, drawing a parallel with how technological advancements have made computers more affordable over time.

He said this during Standard Chartered’s 100th Anniversary Celebration (Kuching Branch) on Sunday.

The speech was reported on the Premier’s official Facebook page ‘Sarawakku’.

Looking ahead, Abang Johari said Sarawak aims to produce 240,000 tonnes of hydrogen annually by 2027, with Japan and Korea as the initial markets.

“Sarawak will be the hub for the whole region,” he said, adding that the state stands to gain an additional revenue stream through this initiative.

He highlighted Sarawak’s abundant water resources — rivers, rainfall, and dams — as the foundation for producing clean energy, specifically hydrogen.

“Water is H2O — hydrogen and oxygen. Scientists say the cleanest energy is hydrogen,” he explained.

He recounted his earlier efforts to explore hydrogen production, beginning with a trip to Germany when he was deputy chief minister.

There he engaged with Linde, a leading industrial gas company, on the potential of hydrogen energy.

“I told them, one day our vehicles will be powered by water,” he recalled.

According to him, his vision was met with initial scepticism but later developments have proven him right.

Sarawak has since established a small hydrogen production plant here, though the Premier has acknowledged the high energy cost associated with hydrogen production.

He detailed a successful collaboration with Petronas that has reduced the energy required from 60 kilowatt-hours to 30 kilowatt-hours per kg of hydrogen, thanks to advancements in membrane technology.

Further improvements have brought this down to 28 kilowatt-hours.

On another matter, Abang Johari emphasised that while the world faces significant issues like climate change and food security, Sarawak is uniquely positioned to turn these challenges into benefits through strategic investments.

“When talking about Sarawak’s investments, I think there are opportunities. You have to look at the circumstances at that particular time,” Abang Johari said.

He noted that while problems exist, these could also present opportunities if approached with foresight.

Addressing the pressing issue of climate change, Abang Johari traced the global awareness back to the Kyoto Protocol of 1997 and the Paris Agreement of 2015.

“There were two schools of thought—some believed it wouldn’t happen, while others, particularly NGOs, warned that it could,” he said.

The Paris Agreement eventually acknowledged the reality of climate change, with the world agreeing to take action to limit global temperature increases.

The Premier pointed out the severe implications if global temperatures rise 1.5 degrees above pre-industrial levels, which could threaten food security, human survival, and increase the unpredictability of future events.

He also reflected on his experience at a recent conference in Dubai, where there was a clear divide between oil-producing countries advocating for continued fossil fuel use and others pushing for clean energy.

“Looking at Sarawak, we are not in such a bad position. Our temperature remains stable, and we have rainfall almost throughout the year,” Abang Johari said.

Among those present at the event were Standard Chartered Bank Malaysia chairman Datuk Yvonne Chia, Malaysia chief executive officer Mak Joon Nien, and members of the board of directors of Standard Chartered Malaysia and Standard Chartered Saadiq Malaysia.