The Sarawak Legislative Assembly (DUN) has taken a significant step towards regulating hydrogen-related activities in the state by passing the Distribution of Gas (Amendment) Bill, 2024.
Tabled by Utility and Telecommunication Minister Datuk Seri Julaihi Narawi, the Bill introduces a comprehensive legal framework for the generation, distribution, storage, and export of hydrogen, aligning with Sarawak’s clean energy ambitions.
“The Amendment Bill expands the definition of ‘gas’ to include hydrogen, thereby enabling regulatory oversight,” Julaihi said when tabling the Distribution of Gas (Amendment) Bill, 2024, during the second meeting of the third session of the 19th Sarawak Legislative Assembly (DUN) sitting today (Nov 11).
A new Part Individual Voluntary Arrangement (IVA), dedicated to hydrogen, has been introduced to the Ordinance.
This part designates the Minister responsible for energy and environmental sustainability as the overseeing authority for hydrogen activities.
The Bill also establishes the role of a Regulator, appointed by the Minister, who will be responsible for issuing licenses for various hydrogen-related activities, including:
- Generation of hydrogen using various feedstocks
- Construction and maintenance of hydrogen generation facilities
- Storage of hydrogen
- Distribution, transportation, and conveyance of hydrogen within Sarawak or for export
- Sale, retail, and utilisation of hydrogen as a fuel for transportation, electricity generation, and industrial applications
“The Regulator will also be tasked with promoting the economic development of Sarawak’s hydrogen industry, encouraging investment, and facilitating the export of hydrogen,” Julaihi added.
To ensure regulatory compliance, the Amendment Bill introduces new offences and penalties, empowering the Director or Regulator to impose financial penalties and initiate legal action.
Unauthorised hydrogen activities, such as generation, storage, or distribution without proper licensing, will be punishable by fines of up to RM1 million and imprisonment of up to five years.
The Sarawak State Cabinet is also empowered to impose rates, levies, taxes, or charges on hydrogen activities, including feedstock imports, facility operations, sales, exports, distribution, and transportation.
“With the passing of this Amendment Bill, Sarawak is well-positioned to capitalise on the potential of hydrogen as a clean energy source and attract investments in this emerging sector,” he added.
A total of 22 assemblypersons supported the Bill.
