Sarawak Nears Completion of $4.2 Billion Green Hydrogen Venture

Sarawak is actively fostering partnerships for green hydrogen initiatives valued at an impressive total of US$4.2 billion. These partnerships include the development of extensive hydrogen plants within the Sarawak Hydrogen Hub in Bintulu and the Rembus Depot near Kuching. SEDC Energy Sdn Bhd, a subsidiary of the Sarawak Economic Development Corp (SEDC), is poised to finalize at least three agreements this week, advancing the state's ambitious plans to produce green energy for both export and domestic consumption.

Robert Hardin, the CEO of SEDC Energy, confirmed that the state is on the verge of signing agreements for two large-scale green hydrogen projects integral to the Sarawak Hydrogen Hub. The first of these projects, titled Project H2ornbill, involves a tripartite agreement between SEDC Energy and two Japanese firms, Eneos (an oil company) and Sumitomo Corp (a trading house). This collaboration aims to develop two hydrogen-producing plants.

In the second project, Project H2biscus, SEDC Energy is partnering with three South Korean companies—Samsung Engineering, Posco, and Lotte Chemical—to establish hydrogen derivative facilities. Simultaneously, SEDC Energy is entering into a joint venture with Gentari, the green energy arm of Petroliam Nasional Bhd (Petronas), to create common facilities for the Sarawak Hydrogen Hub. These common facilities will include pipelines supporting the H2ornbill and H2biscus plants.

Together, the H2ornbill and H2biscus projects have the potential to produce 240,000 tonnes per annum (tpa) of green hydrogen, positioning the Sarawak Hydrogen Hub as one of the world's largest producers of clean energy. Sarawak aims to generate close to 2,000 tonnes of green hydrogen for local consumption, aligning with its vision for sustainable energy development.

In addition to the Sarawak Hydrogen Hub, SEDC Energy plans to develop a hydrogen production plant and refuelling station to support the Rembus Depot, an integral part of the Kuching Urban Transportation System (KUTS). This initiative involves signing tripartite agreements with Sarawak Metro Sdn Bhd and O&G firm ICE Petroleum Group, aiming to produce green hydrogen for local use. The Rembus Depot serves as the central hub for the Autonomous Rapid Transit (ART), contributing to KUTS.

Expected to be completed by 2025, the Rembus Depot plant anticipates producing about 1,900 tonnes of hydrogen annually, with an estimated construction cost ranging from RM400 million to RM500 million. ICE Petroleum will handle the engineering, procurement, construction, installation, and commissioning (EPCIC) aspects of the project, marking a significant step for the Kuala Lumpur-based oil and gas EPCC outfit.

Sarawak's green hydrogen initiatives align with global movements toward renewable energy and net-zero emissions. With significant advancements in these projects, Sarawak is well-positioned to lead in the net-zero carbon economy, contributing to the realization of its Hydrogen Economy Roadmap and the goal of becoming a developed state by 2030.