Against this backdrop, the Hydrogen Economy Forum (H2EF) 2025<\/a> was held from 13 to 14 May in Kuching, Sarawak. Organised under the Asia Pacific Green Hydrogen (APGH)<\/a> network, the forum brought together stakeholders from government, industry, and academia to explore hydrogen\u2019s future and Sarawak\u2019s potential as a regional leader in this growing field.<\/p>\n\n\n The Hydrogen Vision for Sarawak<\/strong><\/strong><\/p>\n\n\n\n Sarawak has set its sights on becoming a regional powerhouse in the green hydrogen economy<\/a>. Leveraging its abundant renewable energy\u2014particularly from hydropower\u2014alongside low operating costs and strategic geography, the state is positioning itself as a key exporter and innovation hub for clean hydrogen and its derivatives.<\/p>\n\n\n\n Central to this ambition is Sarawak\u2019s plan to commence large-scale commercial production of green hydrogen by 2027, with domestic use beginning earlier in Kuching by 2025. Flagship projects like H2biscus<\/a> and H2ornbill<\/a> in Bintulu are poised to drive this effort. These initiatives, in collaboration with international partners from South Korea and Japan, aim to produce and export green hydrogen, ammonia, and methanol at industrial scales\u2014potentially placing Sarawak at the forefront of Asia\u2019s hydrogen supply chain.<\/p>\n\n\n\n The H2biscus project is expected to yield 7,000 tonnes of green hydrogen annually, along with 630,000 tonnes of green ammonia and 460,000 tonnes of green methanol. Meanwhile, H2ornbill will generate 90,000 tonnes of green hydrogen per year, including 2,000 tonnes for local use. An additional export facility in Samalaju<\/a>, developed by H2X, Thales, and SEDC Energy, targets production of 970,000 tonnes of green ammonia and 170,000 tonnes of hydrogen annually.<\/p>\n\n\n\n To support this vision, Sarawak is investing heavily in hydrogen infrastructure\u2014from refuelling stations to the RM6 billion Kuching Urban Transportation System (KUTS)<\/a>, a hydrogen-powered autonomous rapid transit network set to operate in 2027<\/a>.<\/p>\n\n\n Beyond economics, Sarawak sees hydrogen as a pathway to decarbonisation, energy security, and job creation\u2014projected to add at least RM2.4 billion to the state GDP by 2030<\/a>. Education is also a priority, with Curtin University Malaysia offering hydrogen-focused engineering programs<\/a> and establishing a research centre (Conserv)<\/a> to build local expertise.<\/p>\n\n\n\n With a strategic blend of resources, early investment, and strong international partnerships, Sarawak is charting a bold course toward a clean and competitive hydrogen future.<\/p>\n\n\n\n Sarawak<\/strong>\u2019<\/strong>s Hydrogen Ambitions: From Regional Aspirant to Clean Energy Powerhouse<\/strong><\/strong><\/p>\n\n\n\n During the H2EF Forum, the Premier of Sarawak, The Right Honourable Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg, delivered a keynote address titled “Charting a New Energy Future: Sarawak’s Hydrogen Economy in Action,\u201d whereby several key information were announced.<\/p>\n\n\n\n Sarawak\u2019s hydrogen ambitions are now formally charted in the newly launched Sarawak Hydrogen Economy Roadmap (SHER)<\/a>. The roadmap outlines a strategic plan to leverage Sarawak\u2019s abundant renewable energy resources, natural gas, and carbon capture technologies to scale up low-carbon hydrogen production and drive sustainable growth in the sector.<\/p>\n\n\n\n At the core of SHER are four strategic pillars<\/strong>: renewable energy, natural gas, carbon capture and storage (CCS), and hydrogen. Together, they form an integrated framework for low-carbon hydrogen production, capitalising on Sarawak\u2019s natural and infrastructural strengths.<\/p>\n\n\n\n To scale up this emerging sector, the roadmap focuses on:<\/p>\n\n\n\n The roadmap also supports ecosystem-building at the local level, encouraging partnerships between Sarawak\u2019s universities, research centres, and industry leaders. Notably, recent collaborations involve SEDC Energy<\/strong>, Sarawak Petchem<\/strong>, Bureau Veritas<\/strong>, and UNIMAS<\/strong>, reinforcing the talent and infrastructure base needed for a hydrogen economy.<\/p>\n\n\n\n Progress has already gained momentum. The unveiling of SHER was the centrepiece of the Hydrogen Economy Forum 2025 (H2EF)<\/strong> in Kuching, attended by over 400 global delegates. The forum facilitated key MoUs and LOIs to advance hydrogen projects and ESG initiatives. Building on this success, Sarawak will host the Asia Pacific Green Hydrogen (APGH) Conference 2026<\/strong> at BCCK, reaffirming its role as a regional convener for clean energy dialogue and innovation.<\/p>\n\n\n\n Other notable milestones include the release of Sarawak\u2019s first SME ESG report<\/strong>, offering insights into how local businesses are responding to sustainability standards, and reinforcing the green economy\u2019s reach across all sectors.<\/p>\n\n\n\n Ultimately, the roadmap embraces both optimism and realism: it recognises existing challenges in hydrogen\u2019s cost and scalability, yet places confidence in continued innovation and policy alignment to make hydrogen a key part of Sarawak\u2019s energy and economic future. By 2035, Sarawak aims not just to participate in the hydrogen economy, but to lead it.<\/p>\n\n\n\n Hydrogen as Sarawak<\/strong>\u2019<\/strong>s Next Export Powerhouse: Promises<\/strong><\/strong><\/p>\n\n\n\n Sarawak\u2019s hydrogen strategy is not merely about domestic transformation\u2014it is poised to become a new economic engine through exports and sustainable development. With competitive production costs, abundant renewable energy, and forward-looking infrastructure, Sarawak is emerging as a prime player in the global hydrogen economy.<\/p>\n\n\n\n Hydrogen as a High-Potential Export Commodity<\/strong><\/strong><\/p>\n\n\n\n Several delegates at the Hydrogen Economy Forum (H2EF) 2025<\/strong> highlighted Sarawak\u2019s potential as a future major exporter of green hydrogen<\/strong>, particularly to energy-hungry economies in Asia.<\/p>\n\n\n\n Three critical factors underpin this export opportunity:<\/p>\n\n\n\n Beyond individual trade relationships, Sarawak is pursuing a broader ambition to become ASEAN<\/strong>\u2019<\/strong>s green hydrogen hub<\/strong>. Its strategic location, supported by existing facilities such as Bintulu Port\u2014Malaysia\u2019s sole LNG export gateway<\/a>\u2014strengthens its credentials as a future export base and partner in regional energy trade.<\/p>\n\n\n\n Sarawak also plans to integrate into the ASEAN Power Grid<\/a>, enhancing cross-border energy connectivity and green electricity exports as part of its regional decarbonisation strategy.<\/p>\n\n\n Broader Benefits of a Hydrogen Economy<\/strong><\/strong><\/p>\n\n\n\n The hydrogen sector promises transformative impacts across multiple domains in Sarawak\u2019s economy and society:<\/p>\n\n\n\n Hydrogen Economy In Sarawak: Strategic Challenges and the Way Forward<\/strong><\/strong><\/p>\n\n\n\n While Sarawak\u2019s hydrogen ambitions are globally significant and strategically positioned, several key challenges must be addressed to turn vision into reality. The Sarawak Premier acknowledges the concerns raised by sceptics as well as the present challenges that had been highlighted in the forum, underscoring that the development of a green hydrogen economy remains complex, capital-intensive, and uncertain.<\/p>\n\n\n 1. Economic Viability and Market Uncertainty<\/strong><\/strong><\/p>\n\n\n\n Despite Sarawak\u2019s low-cost hydropower, green hydrogen remains expensive<\/strong> to produce due to the high cost of electrolysers and the capital intensity of renewable infrastructure. The global hydrogen market is still nascent, with grey and blue hydrogen<\/strong> currently dominating due to their lower costs and established supply chains.<\/p>\n\n\n\n Investors remain cautious, and private financing is limited<\/strong>. Most banks view green hydrogen ventures as high-risk, meaning developers often struggle to secure the capital needed for research, development, and infrastructure. The uncertain global demand<\/strong> for green hydrogen\u2014exacerbated by limited long-term purchase agreements\u2014further complicates Sarawak\u2019s export aspirations.<\/p>\n\n\n\n To unlock the full economic potential of hydrogen, Sarawak must build investor confidence<\/strong>, expand access to green finance, and pursue guaranteed offtake agreements<\/strong> with committed international partners.<\/p>\n\n\n\n 2. Technological and Infrastructure Gaps<\/strong><\/strong><\/p>\n\n\n\n Hydrogen\u2019s value chain\u2014from production to storage and transportation\u2014remains technologically demanding and costly:<\/p>\n\n\n\n Bridging these gaps will require long-term investment in research, demonstration, and innovation<\/strong>, as well as partnerships with international technology providers.<\/p>\n\n\n\n 3. Environmental and Social Considerations<\/strong><\/strong><\/p>\n\n\n\n Though green hydrogen is a clean energy solution, its development brings environmental and social implications<\/strong>:<\/p>\n\n\n\n To maintain long-term viability and community support, Sarawak must adopt sustainable development practices<\/strong>, conduct transparent impact assessments, and engage with local stakeholders<\/strong> throughout planning and implementation.<\/p>\n\n\n\n 4. Policy, Regulation, and Market Frameworks<\/strong><\/strong><\/p>\n\n\n\n A clear, stable, and forward-looking policy environment is essential. At present, the regulatory frameworks for hydrogen in Sarawak are still evolving<\/strong>, and gaps persist in areas such as:<\/p>\n\n\n\n To move forward, Sarawak must continue developing a robust policy ecosystem<\/strong> that provides clarity for investors, aligns with federal and global standards, and fosters a competitive hydrogen marketplace<\/strong>.<\/p>\n\n\n\n 5. Scaling and Commercialisation Risks<\/strong><\/strong><\/p>\n\n\n\n Transitioning from pilot-scale to full-scale hydrogen production<\/strong> entails significant risk:<\/p>\n\n\n\n A successful scale-up will require risk-sharing mechanisms<\/strong>, public-private partnerships, and strategic project sequencing<\/strong> to build confidence and demonstrate early wins.<\/p>\n\n\n\n The Way Forward<\/strong><\/strong><\/p>\n\n\n\n To navigate these strategic challenges, Sarawak\u2019s hydrogen roadmap should emphasise:<\/p>\n\n\n\n By proactively addressing these challenges, Sarawak can not only safeguard its hydrogen investments but also position itself as a resilient and responsible global leader<\/strong> in the green energy transition.<\/p>\n\n\n\n Final Thoughts<\/strong><\/strong><\/p>\n\n\n\n Sarawak\u2019s foray into the hydrogen economy is both bold and timely. Anchored by its abundant renewable resources, strategic regional positioning, and strong political will, the state is charting a pioneering path toward a green energy future. From flagship projects like H2biscus and H2ornbill to policy aspirations of becoming Southeast Asia\u2019s green hydrogen hub, Sarawak is laying the groundwork for economic transformation, energy diversification, and environmental leadership.<\/p>\n\n\n\n Yet, this journey is not without its challenges. High production costs, emerging technologies, underdeveloped infrastructure, and market uncertainty all pose significant hurdles. Addressing these issues will require coordinated efforts across policy, industry, and research \u2014 and a readiness to embrace long-term, systemic change. Still, the opportunities are immense. A mature hydrogen sector could open new export markets, spur innovation, create high-quality jobs, and support Sarawak\u2019s broader aspirations of becoming a high-income and net-zero state by 2050. With the right investments, governance, and international partnerships, Sarawak can not only realise its hydrogen vision but help shape the global clean energy transition.<\/p>\n\n\n <\/p>\n\n\n\n References:<\/p>\n\n\n\n![\"\"](\"https:\/\/www.rakansarawak.com\/v3\/wp-content\/uploads\/2025\/05\/RO-11-4-1-046-2025-1024x536.jpg\")
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