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Sarawak on track to develop energy hubs
Sarawak on track to develop energy hubs

The Star

time4 days ago

  • Business
  • The Star

Sarawak on track to develop energy hubs

KUCHING: Sarawak is developing four strategic energy hubs which are projected to unlock investment opportunities worth between RM350bil and RM430bil, says Premier Tan Sri Abang Johari Tun Openg (pic). He said these are the renewable energy hub, natural gas hub, hydrogen hub and carbon capture, utilisation and storage (CCUS) hub. 'Each of these hubs plays a complementary role, working together towards a common and critical objective, ensuring energy security for Sarawak, today and for generations to come. 'Additionally, the Sarawak government will introduce a suite of comprehensive and forward-looking policies, including Sarawak Hydrogen Economy Roadmap, Sarawak Sustainability Blueprint, Sarawak Energy Transition Policy and Sarawak Energy Efficiency Roadmap,' added Abang Johari in the Sarawak state assembly. He expects the energy hubs to create some 44,000 new high-value jobs for Sarawakians, adding that these jobs will be generated by new industries, which can boost opportunities for local small and medium enterprises, attract domestic and foreign direct investments and strengthen Sarawak's regional and global competitiveness. Saying that Sarawak's journey towards becoming a global leader in green energy is gaining strong international momentum, Abang Johari said the recent maiden export of methanol to China from Bintulu and the launch of green methanol project by state-owned Sarawak PetChem Sdn Bhd had sent clear signals that Sarawak is moving up the clean energy value chain. 'As part of our ongoing low-carbon transition, we are also advancing infrastructure that support cleaner energy systems, including the development of hydrogen-ready technologies, such as our combined cycle gas turbine facility.' He said these initiatives aim to boost energy efficiency, strengthen power security and open potential interconnections with neighbouring regions, such as Sabah and Brunei. 'These efforts have not gone unnoticed. The World Economic Forum (WEF) has recognised Sarawak's leadership in this transition. 'Bintulu has been nominated as Malaysia's first candidate for the WEF Transitioning Industrial Cluster (TIC), a reflection of WEF's confidence in our ability to balance industrial growth with sustainability. 'As we engage key players in Bintulu and Samalaju (where energy-intensive industries are operating) to formalise our TIC Statement of Ambition, we are not just preparing for recognition in Davos early next year. 'We are laying the foundation for Sarawak to stand among global leaders in shaping the low-carbon industrial future,' he added. TIC are geographic areas where co-located businesses and industries collaborate to transition from traditional practices to cleaner, low-carbon operations aligned with net-zero goals. To-date, 35 industrial clusters have signed on to the initiative and they include Port of Rotterdam in the Netherlands, Ohio Clean Hydrogen Hub Alliance in the United States and the Kawasaki Carbon Neutral Complex in Japan. The premier has been invited to share Sarawak's green energy ambitions at the WEF annual meeting of the new champions in Tianjin, China, on June 26. Abang Johari said in view of Sarawak's growing role in the global energy sector, he had directed state-owned Sarawak Energy Bhd (SEB) to undertake a review and restructure its organisational framework. This involves the separation of power generation and distribution, where power generation will involve investments from the private sector. SEB will continue its function as the single buyer for electricity distribution in Sarawak. 'We have already seen a strong interest from private sector players in implementing large-scale solar and other renewable projects, such as bio-energy and waste-to-energy initiatives. 'The development of new renewable energy sources through the independent power producer model is central to Sarawak's ambition of achieving 10GW of total installed capacity by 2030 and 15GW by 2035. 'Under the upcoming Sarawak Energy Transition Policy, we have set a target for renewables to make up at least 60% to 70% by 2025,' he added. Abang Johari said the restructuring of the SEB is key to ensuring the utility body is fully able to drive Sarawak's vision of becoming both a 'Battery of Asean' and a renewable energy powerhouse. On the state's ambition to establish an aerospace hub, he said a Sarawak-Airbus joint task force will be set up to formulate a roadmap for the development of the state's aerospace industry, involving expertise from both parties. During his recent visit to Airbus' headquarters in France, Abang Johari said the aerospace company is supportive of Sarawak's ambitions and had proposed the Airbus-Sarawak Kenyalang Strategic Partnership Avenues, which will cover six key areas. These are paths towards sustainable aviation fuel production; human capital development; industrial ecosystem development; digital airline journey; Airbus consulting project for Air Borneo; and airspace operation. Also discussed was the development of an aerotropolis in Sarawak, which will include the new Kuching International Airport. The new airport, which is targeted to accommodate more than 15 million passengers annually, will embody modern, green architectural principles and be equipped with cutting-edge systems to ensure a seamless passenger journey, from check-in to boarding. 'The development of our new international airport and deep seaport in Kuching will involve private sector investments and not only be funded by the Sarawak government. 'There has been expression of interest by the private sector, local multi-national and international corporations to spearhead the projects,' said Abang Johari.

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