State Deputy Energy and Environmental Sustainability Minister Datuk Dr Hazland Abang Hipni replying a question in the Sarawak Legislative Assembly on Thursday (May 22).
KUCHING: Developing a hydrogen economy will lay a strong foundation for Sarawak's future despite substantial initial investments, the state legislative assembly heard on Thursday (May 22).
State Deputy Energy and Environmental Sustainability Minister Datuk Dr Hazland Abang Hipni said clean hydrogen was projected to grow to US$5.95bil (RM25.33bil) by 2030, mainly driven by rising demand for clean energy solutions such as marine and aviation fuel.
In this regard, he said, the state government was confident that developing a hydrogen economy would position Sarawak as a significant player in the industry.
"Although immediate economic returns may be modest, these strategic investments are expected to yield substantial long-term benefits as global demand for clean hydrogen rises, reinforcing Sarawak's commitment to environmental sustainability and clean energy leadership, aligning with the post-Covid development strategy 2030," he told Miro Simuh (GPS-Serembu) during question time.
Dr Hazland also said the hydrogen industry faced challenges in creating immediate economic benefits as it was still a relatively new energy source.
He said Sarawak's economy was heavily reliant on oil and gas, making it challenging for hydrogen to gain traction.
"Investors may prefer established industries with quicker returns rather than the emerging hydrogen market," he said.
In addition, he said significant upfront investment was needed to build hydrogen infrastructure, while the production of clean hydrogen required specialised technical skills which Sarawak was still developing.
Nevertheless, Dr Hazland said Sarawak could leverage its hydropower resources to produce cost-effective clean hydrogen.
"Sarawak's unique topography gives it a comparative advantage in hydroelectricity production, resulting in lower industrial electricity tariffs.
"By harnessing this renewable hydropower to drive the electrolysis process, Sarawak can produce clean hydrogen efficiently and sustainably, converting water into hydrogen without carbon emissions and furthering its commitment to clean energy," he said.
