Gas bill amendment empowers Sarawak to regulate hydrogen industry

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THE PASSING of the Distribution of Gas (Amendment) Bill 2024 will empower the state government to regulate activities such as hydrogen generation, the use of land and premises for hydrogen facilities, and hydrogen distribution.

Supporting the bill, Royston Valentine (GPS-Telian) said the amendment is an important update to existing legislation that positions Sarawak at the forefront of adopting hydrogen as a clean energy source.

“The amendment introduces authority to set regulations on various aspects of hydrogen, including licensing procedures, specifications, standards for hydrogen generation, hydrogen quality, safety, and the decommissioning of facilities,” he said.

He said this when debating the Distribution of Gas (Amendment) Bill 2024 at the second meeting of the third session of the 19th Sarawak Legislative Assembly (DUN) sitting, Monday (Nov 11).

He cited the the amendment to Section 1, which adds a new subsection on hydrogen, will regulate the production of hydrogen using raw materials sourced from Sarawak; use of land and buildings for hydrogen production facilities; and distribution of hydrogen, whether for local consumption or export.

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The amendment also clarifies the definitions of “hydrogen production facility” and “hydrogen production,” ensuring a clear framework for licensing and compliance.

A key aspect, according to Royston, the licensing process introduced in Section 19B, which requires a license from the Controller for all hydrogen-related activities.

Section 19C further defines specific requirements for licensing hydrogen production and distribution, ensuring operations meet strict safety, health, and environmental standards.

Meanwhile, Section 19F empowers the government to implement levies, charges, and fees associated with hydrogen production and distribution.

“This will not only enhance the safety and efficiency of our energy resource management but also open new opportunities for innovation in the green energy sector, which our government leads today,” he added.

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