The cost of producing hydrogen is expected to decrease as technology progresses

KUCHING, Oct. 1: The risks of developing the hydrogen industry should be assessed comprehensively taking into account technological advances that could potentially reduce production costs and expand markets in the future.

Sarawak Premier, Datuk Seri Tan Sri Abang Johari Tun Openg said that like any new technology, the development of hydrogen industry is facing uncertainty, especially in terms of demand, market and project viability.

However, he said, technological developments are expected to improve production efficiency thus lowering costs and expanding the base of hydrogen consumption.

"There is a risk. I agree there are risks, but we need to analyze those risks and look at the technology that will be used in the future.

"When we do something new, there is an element of uncertainty in terms of usage. But I believe technology will cut costs. As production costs decrease, demand for hydrogen is expected to increase", he said during the Sarawak Corporate Leadership Summit 2026 (SCOPE) here today.

Brother Johari said this when asked to comment on the views of Global Asia Consulting analysts who reportedly questioned the viability of the hydrogen project and suggested that the Federal government re-evaluate the incentives given to Sarawak.

Commenting further, he described the current development of the hydrogen industry as a "chicken and egg" issue, i.e. whether demand must be created first or production must begin to shape the market.

He said taking risks is part of the development of new technologies, but it needs to be done on a thorough assessment basis.

"It's like computers in the old days. Computers used to be very expensive, but today they are cheaper because new technology is being used in the manufacturing process.

"I believe the same thing will happen to hydrogen", he said.

Brother Johari said that among the main factors that have caused the cost of hydrogen production to remain high at present are energy consumption and electrolyzer costs.

However, he said, advances in membrane technology have the potential to improve the efficiency of hydrogen and oxygen separation processes, thus reducing energy consumption as well as production costs.

"When the membrane becomes denser and can be used in groups, the process becomes more efficient. When this membrane technology works, costs will be lower and energy consumption will also decrease", he said.

He said that the development of hydrogen technology is also gaining renewed attention internationally, with some countries increasing their focus on its use.

"Now the technology has evolved. Many countries are returning to hydrogen. Germany is refocusing its attention on hydrogen, and so is China", he said.