Malaysia to be Biggest Hydrogen Exporter in SEA Region
In recent years, the world has been jumping on the renewable energy (RE) bandwagon, with more people adopting sustainable practices in multiple aspects of their businesses and lives. So far, the most common type of renewable green energy (RE) has been solar energy, as it is known to be the cleanest and most abundant RE source. However, certain countries are already taking the next step in developing a more sustainable, cleaner energy that could also be easily accessible and affordable: hydrogen. Back in October 2023, the Malaysian government launched its Hydrogen Energy and Technology Roadmap (HETR) which outlines initiatives to strategically position the country in the centre of the global hydrogen ecosystem. As highlighted in the HETR, Prime Minister Datuk Seri Anwar Ibrahim said that hydrogen has a huge potential to be the cornerstone for new energy and economic driver for Malaysia and that developing this potential requires investment in hydrogen technologies to promote domestic consumption, ensure generation stability, provide security of affordable energy, sustain international energy trading, and decarbonise emissions. “I am delighted that the Ministry of Science, Technology and Innovation (MOSTI) created the HETR to guide the development of Malaysia’s hydrogen economy (and) pave the way to achieving environmentally sustainable, long-term energy security for Malaysia, driven by technological innovation,” he said. Anwar added that the roadmap provides a clear deployment pathway to scale up hydrogen economy and technology to drive both supply and demand, simultaneously. “We need to invest in new infrastructure to develop and distribute hydrogen to expand its economy of scale, as well as in new technologies and cultivating talents,” he continued. Echoing this sentiment, MOSTI Minister Chang Lih Kang expressed the government’s intention to position Malaysia as a global leader in the emerging hydrogen economy by 2050, leading the ASEAN region and establishing a robust presence in the hydrogen to the Asia Pacific region, thereby promoting energy security, affordability and sustainability to the country. “I believe that hydro is the way forward. Even now, globally, there are quite a number of countries that have already started in developing their hydrogen economy. Given our advantage in green hydrogen production, we’re also looking to become the regional leader in this very attractive and lucrative hydrogen economy. “Other countries such as Japan in 2017, Australia in 2019 and Singapore in 2022, have launched their national hydrogen strategies in recent years, so it was timely for Malaysia to do the same,” Chang said in an exclusive interview with The Exchange Asia. According to Chang, the global green hydrogen market is projected to reach a staggering US$189.19 billion by 2050, with Asia Pacific accounting for 43% of this market, followed by ASEAN with 13%, and Malaysia at 2%. By tapping into this market, Malaysia has the potential to generate revenues estimated to be worth at least RM905 billion by 2050, under what is known as the Emission Driven Scenario (EDS) that comes with interventions through the introduction of hydrogen in the economy and has decarbonisation targets of 5%-10% greenhouse gas emission (GHG) reduction. Chang also revealed that Sarawak has been taking the lead in driving Malaysia’s hydrogen economy forward through smart joint ventures and project investments, as the state already has access to low-cost renewable electricity from hydropower. “Similar to other types of technology, during the initial stages, everything is about costs, and it can get a bit expensive to develop and implement. However, looking at the progress of (hydrogen) technology, eventually, we will come to a point where we can reach the level of feasibility in the ecosystem. “If we look at other countries’ experiences, we can already witness successful case studies and examples to show that hydro tech really works wonders as an alternative clean fuel. Not only in mobility but also in other heavy industries that would utilise large amounts of energy,” Chang elaborated. Achieving HETR’s ‘Ambitious Target’ By implementing the initiatives outlined in the HETR, the government is expecting to generate about RM12.1 billion in national revenue by 2030 through a ‘Build Some, Buy Some’ concept where certain available technologies are demonstrated, scaled-up and deployed first (Build Some) and complementary external technologies are to be procured (Buy Some). This concept is also crucial in achieving low hydrogen generation costs in the global market for the development of a complete economic ecosystem. “Under EDS, the HETR projects that RM12.1 billion in revenue will be generated from using hydrogen in industrial sectors, specifically non-energy and heat applications. “By 2030, the use of hydrogen is expected to be up to 32.297 TWh (Tera Natt-hours) in non-energy applications, followed by up to 1.068 TWh for industrial heat boilers. This will also result in a projected 1.3% GHG reduction by 2030. Additionally, the cost of green hydrogen, from water through RE (solar, hydropower, etc) or bio-based feedstocks, will be between US$1.35-4.82 per kg by 2030,” Chang explained. He continued by saying that Sarawak has already established 2 hydrogen production plants, with expectations of exporting 240,000 tonnes of hydrogen to Japan and Korea by 2028. According to Chang, there are various other initiatives that the government is currently discussing with industry players in Borneo and the Peninsular in terms of production, storage and tech adoption. “Because we already started on the hydrogen initiative before the roadmap was even launched, selected industry players are already in the market, but we are looking at how to further reduce the cost of production and distribution,” he said, adding that the level of adoption is crucial in making these initiatives a success. Chang stated that the government plays an important role in educating and enlightening the public on the feasibility of hydrogen utilisation, which is the first phase of the HETR. For this, the National Nanotechnology Centre (NNC), a division under MOSTI, is the ministry’s focal point for leading and implementing hydrogen initiatives. Recently, the NNC hosted the National HETR Steering Committee Meeting on 25 July 2024, to which the committee is responsible for ensuring the planning and implementation of the HETR to ensure that
