KUCHING: Hydrogen-related activities in Sarawak will be regulated following amendments to the state's Distribution of Gas Ordinance.
State Utility and Telecommunication Minister Datuk Seri Julaihi Narawi said the amendments aimed to establish a legal framework to regulate the distribution of hydrogen generated in Sarawak, the premises to be used for generating or storing hydrogen as well as the transportation of hydrogen for distribution and delivery to domestic consumers and for export.
He said this would support Sarawak's clean energy transition by enabling and promoting hydrogen development, generation, distribution and use.
"This amendment Bill incorporates new provisions under a new Part IVA to specifically regulate activities in relation to hydrogen, a gas which is newly included in the definition of gas in the principal Ordinance," he said when tabling the Distribution of Gas (Amendment) Bill in the Sarawak Legislative Assembly on Monday (Nov 11).
The Bill was passed after more than 20 assemblymen debated it.
Julaihi said a regulator would be appointed to issue licences for activities such as generating hydrogen; building or maintaining a hydrogen generation facility; using any premises for storing hydrogen; distributing or transporting hydrogen within Sarawak or for export; and selling or using hydrogen as fuel for transportation, electricity generation and other industrial processes.
He said it would be an offence to carry out hydrogen-related activities without a licence, punishable by a fine of RM500,000 to RM1mil and imprisonment up to five years.
In addition, he said the Bill empowered the state Cabinet to impose state taxes or charges on hydrogen-related activities, including feedstock imports, facility operations, sales, exports, distribution and transportation of hydrogen.
"With this amendment Bill in place, it would empower Sarawak to regulate hydrogen activities, underscoring Sarawak’s commitment to advancing its hydrogen economy by having a transparent and investor-friendly regulatory framework to develop clean energy solutions in Sarawak," he said.
Addressing safety concerns raised by Opposition assemblymen Chong Chieng Jen and Violet Yong, Julaihi said the state government was committed to a strong regulatory framework to protect public safety and support the growth of the hydrogen industry.
"Hydrogen is not a new fuel. International safety standards already exist to manage the risks associated with its production, storage, transportation and use.
"The safety system and protocols that Sarawak will adopt will be in line with those applied to other fuels, ensuring hydrogen can be produced, stored and used safely in line with international standards," he said.
