PREMIER Datuk Patinggi Tan Sri Abang Johari Tun Openg has reiterated that hydrogen has immense potential as a sustainable energy source worldwide.
He said a few members of the House had expressed their doubts about the future of the hydrogen economy.
“In fact, even Elon Musk, known for his work with electric cars, has recently acknowledged the value of hydrogen. While he has long championed electric vehicles, he now sees hydrogen as a viable solution for mobility,” he said while delivering his ministerial winding-up speech today (Nov 20).
“Hydrogen’s versatility makes it a crucial piece in the clean energy transition as it can store energy, support energy security, and decarbonise sectors like heavy industry and long-haul transportation,” he added.
Abang Johari acknowledged that the journey to clean and green hydrogen during the early stages of development can be costly.
“Producing green hydrogen using renewable energy to split water remains costly, ranging from USD3 to USD6 per kilogram compared to USD1 to USD2 per kilogram for grey hydrogen made from natural gas.
“The International Energy Agency (IEA) forecast that green hydrogen costs could decrease by over 50 per cent by 2030, as technology advances and renewable electricity becomes more affordable,” he said.
The Premier assured that hydrogen, like solar energy, is expected to become more affordable and scalable, decreasing costs through technological advancements and economies of scale.
“The world market for green hydrogen is becoming increasingly competitive, and countries rich in renewable energy resources and we are already seizing this valuable opportunity for Sarawak to become a key player in the hydrogen economy.
“High energy demand nations, especially in East Asia, are partnering with Sarawak for hydrogen production,” he said.
He added that projects are underway, with a vision to produce 240,000 tons of green hydrogen annually by 2028, which could add RM2.5 billion to RM3.6 billion annually to Sarawak’s GDP and create high-paying jobs, nearly four times the current average wage, in line with the state’s PCDS 2030 aspirations.
