Dr Hazland: Robust foundation for Sarawak's future based on hydrogen economy, substantial long-term benefits

Borneo Post

22-05-2025

Dr Hazland said as the hydrogen economy is a relatively new energy source, it faces challenges in creating immediate economic benefits. – File photo by Mohd Faisal Ahmad
KUCHING (May 22): The hydrogen economy will lay a robust foundation for Sarawak's future and is expected to yield substantial long-term benefits as global demand for clean hydrogen rises despite the challenges it faces now, said Datuk Dr Hazland Abang Hipni.
The Energy and Environmental Sustainability Deputy Minister said as the hydrogen economy is a relatively new energy source, it faces challenges in creating immediate economic benefits.
He explained that Sarawak's economy is still heavily reliant on oil and gas, making it challenging for hydrogen to gain traction.
'Investors may prefer established industries with quicker returns rather than the emerging hydrogen market,' he said during the question-and-answer session at the State Legislative Assembly (DUN) here today.
He pointed out that building hydrogen infrastructure encompassing production, storage, and transport, requires significant upfront investment, unlike existing infrastructures, which create quicker returns.
'Lastly, hydrogen production, especially clean hydrogen, requires specialised technical skills that Sarawak is still developing.
'Establishing a workforce with these skills will require substantial investment in training programmes and education initiatives, which will take time to produce results.
'More mature sectors, by comparison, have lower workforce entry barriers,' he said.
He was responding to a question from Miro Simuh (GPS-Serembu), who had asked the ministry about barriers faced by the hydrogen economy.
'Although immediate economic returns may be modest, these strategic investments are expected to yield substantial long-term benefits as global demand for clean hydrogen rises, reinforcing Sarawak's commitment to environmental sustainability and clean energy leadership, aligning with the Post Covid-19 Development Strategy 2030,' Dr Hazland said.
When answering supplementary questions regarding Sarawak leveraging its abundant hydropower resources to produce cost-effective green hydrogen, the deputy minister said Sarawak has the potential to do so and could utilise strategic initiatives that build on its natural strengths.
'Sarawak's unique topography gives it a comparative advantage in hydroelectricity production, resulting in lower industrial electricity tariffs.
'By harnessing this renewable hydropower to drive the electrolysis process, Sarawak can produce clean hydrogen efficiently and sustainably, converting water into hydrogen without carbon emissions and furthering its commitment to clean energy,' he said.
Furthermore, he said Sarawak's flagship projects, such as H2biscus and H2ornbill initiatives, reflect Sarawak's proactive efforts in hydrogen production.
As for plans to reduce dependency on conventional energy such as coal and gas, he said it is still important to maintain grid security and stability despite the greater emphasis and investment in renewable energies.
'To support the load growth in Sarawak, Sarawak Energy is working closely with Petros to maintain an equitable level of gas-powered generation under the Sarawak Gas Roadmap.
'On the other hand, the state has decided that the Balingian Coal Fired Power Plant, which was commissioned in 2019, would be the last coal power project in the foreseeable future while making plans to decommission the other ageing coal plants,' he added. Dr Hazland Abang Hipni hydrogen economy lead