EU official praises green energy push by Malaysia’s Sarawak
Bloc commits to mobilize $10.8bn for ASEAN sustainable projects Six major ports function as crucial transhipment hubs that play integral roles in the state’s supply chain by NURUL SUHAIDI KUCHING, Malaysia — Sarawak, a resource-rich state in Malaysia with an ambitioussustainable energy agenda, is drawing interest from the European Union, but the 27-nation group’s top official in the country says the bloc needs new cooperativemechanisms for its companies to take advantage of the opportunity. “We have seen the opportunities and the vision of the state, bringing in hydrogen,sustainable transition to green energy and energy transition,” Michalis Rokas, the EUambassador to Malaysia, said in a speech at the EU-Malaysia Business Day 2024 eventheld on Feb. 14 in Kuching, the capital of Sarawak, which is located on the island ofBorneo.Malaysia is the EU’s third largest trading partner in ASEAN, while the EU is the fourthlargest destination for Malaysian exports. The EU is also the second largest source offoreign direct investment for Malaysia at 25.2 billion euros in 2022. Still, Rokas acknowledged the limited presence of European businesses in Sarawak. Tobridge this gap, he proposed a “blending” model whereby European companies wouldtake the lead in strategic investments, while the EU would provide financial supportthrough grants, guarantees and concessional loans through the European InvestmentBank (EIB). This approach aims to de-risk projects and attract private capital,accelerating Sarawak’s green ambitions.Rokas also said the potential partnership aligns with the EU’s Indo-Pacific Strategy,which emphasizes fostering partnerships with regional countries on issues like climatechange and clean energy. Sarawak’s focus on developing hydrogen production,sustainable aviation fuel, and transitioning away from fossil fuels resonates with theEU’s own sustainability goals. The EIB has been active in Southeast Asia for over three decades, financing projects invarious sectors such as energy, transport, climate action and infrastructure. In 2022, itopened a regional representative office in Jakarta to further strengthen its engagementin Indonesia, Vietnam, Cambodia, Laos and the Philippines. Nikkei Asia understandsthat the bank has been attempting to operate in Malaysia since 2020. Its application ispending government approval for a framework agreement.Rokas also said during his speech that the EU and its 15 member states with a presencein Malaysia will be working on a plan to propose a Global Gateway flagship project inSarawak.Meanwhile, the state’s deputy premier Awang Tengah Ali Hassan welcomed thepotential partnership, highlighting the existing trade relationship between Sarawak andthe EU, which stood at 2.1 billion euros in 2022. He emphasized the state’s commitmentto renewable energy, with a target of generating at least 60% of its power from cleansources by 2030. Sarawak, abundant in oil, gas and timber, is the only Malaysian state with more than70% renewables in its energy mix, mainly from hydroelectric dams. It has threeoperational large-scale hydroelectric dams, with a fourth, Baleh, under construction.The total installed capacity of the operational large-scale hydroelectric dams in Sarawakis 3,452 megawatts. Once Baleh is completed, the total capacity will increase to 4,737MW.Last year, Sarawak announced plans to sell one gigawatt of renewable energy toSingapore via a 700km undersea cable by 2032.“We seek to establish a stronger connection between Sarawak and Europe,” Awang saidat the business event. “I hope this will serve as a venue to forming new networks andposing new paths which yield fruitful outcomes towards an inclusive economy.” Headded that Sarawak’s green push has led to collaborations with global players fromSouth Korea and Japan to develop the hydrogen industry in the state.Sarawak is already embarking on two major hydrogen production projects — withJapan’s Eneos and Sumitomo Corp. on one called H2ornbill, and South Korea’sSamsung Engineering, Posco and Lotte Chemical on another dubbed H2biscus — in theport town of Bintulu, where one of the world’s largest LNG complexes is located.The Sarawak state legislative assembly building and Sarawak River in Kuching, Malaysia. (Photo by Norman Goh)4/2/24, 2:01 PM EU official praises green energy push by Malaysia’s Sarawak – Nikkei Asiahttps://asia.nikkei.com/Business/Energy/EU-official-praises-green-energy-push-by-Malaysia-s-Sarawak 5/5Get our Asia daily briefing newslettersnewsletter@nikkeiasia.com RegisterThe two projects will have the potential to produce up to 238,000 tonnes of greenhydrogen annually, generating an estimated 2.4 billion ringgit to Sarawak’s grossdomestic product by 2030, according to Abang Johari, the state’s premier during hisannual new year address in January.Sarawak also boasts, according to the premier, ASEAN’s first integrated hydrogenproduction plant and refueling station, powering hydrogen buses in Kuching since 2018and a tram on a test basis beginning last year.Also, a third hyrdogen project is based in Rembus, near Kuching, for domestic use andis expected to be fully operational in 2025, according to state-linked company SEDCEnergy and the Sarawak Economic Planning Unit. On Monday, SEDC Energy signed anagreement with Gentari, a subsidiary Malaysia’s state energy conglomerate Petronas todevelop the Sarawak H2 Hub in Bintulu, according to a statement by Gentari.Total hydrogen industry investment in Sarawak is estimated to be worth at $4.2 billion,an SEDC Energy spokesperson told Nikkei Asia.Hydrogen produced in Sarawak is known as green hydrogen — produced via electrolysisand powered by renewable electricity from hydroelectric dams. Additionally, the state ispioneering the production of crude algae oil for sustainable aviation fuel usingmicroalgae.Timothy Ong, the chief executive of the newly established state investment promotionagency InvestSarawak said at a panel session that Sarawak is not only in competitionwith other regions of Malaysia, but with countries like Vietnam, Indonesia, Thailandand Singapore as well.“Although a lot of people come to Sarawak for renewable energy, I can comfortably tellyou today that we have more demand than available supply when it comes to renewableenergy,” Ong said. He added it is important for the state to understand that investmentbenefits must trickle down to the people of Sarawak and companies and not just remainin the hands of foreign or domestic investors.
Japan’s Sumitomo and Eneos toproduce green hydrogen in Malaysia
Hydroelectric-derived power will boost decarbonization drive TOKYO — Oil company Eneos and trading house Sumitomo Corp. will produce “green”hydrogen in Malaysia and export much of it to Japan under plans announced Monday,hoping to further diversify the supply of the fuel essential for decarbonization. The two Japanese companies have signed an agreement with SEDC Energy, a subsidiaryof the Sarawak Economic Development Corp. set up by the Malaysian state of Sarawak.They will also consider establishing a special-purpose company with the Malaysianpartner. Power from hydroelectric plants will be used to electrolyze water to produce the greenhydrogen without emitting carbon dioxide. The aim is to produce 90,000 tonnes a yearby 2030. The scale of investment will be finalized moving forward. SEDC Energy will take the lead on power procurement and hydrogen production, withEneos to provide technical support for the production. Eneos will also contributeproprietary technology for transporting the hydrogen by sea at room temperature.Sumitomo will evaluate project feasibility and financing. Hydrogen, which does not produce CO2 when burned, is essential for decarbonizationin such fields as power generation, transportation and manufacturing. But it isexpensive to produce in Japan, where renewable-energy costs are high. The Japanese government has set a goal of increasing the supply of hydrogen in Japanto 3 million tonnes per year by 2030, and Eneos and Sumitomo are working to produceand transport green hydrogen from around the world.
Sarawak’s energy transition: Navigating the technological frontier for sustainable progress
DUBAI, Dec 5: The synergy between technology and resources is crucial for Sarawak’s energy goals, emphasising the strategic utilisation of technological advancements and efficient resource management. Premier of Sarawak, Datuk Patinggi Tan Sri Abang Johari Tun Openg, emphasizes the significance of this transition as he highlights Sarawak’s technological aspirations focus on hydrogen production, a crucial component in the renewable energy landscape. “It’s a question of technology – harnessing the full spectrum of available resources. For instants three years ago, 1kg of hydrogen, requires 60kw of power. “But now we are working with Petronas, in doing our research, it can come down to 38kw,” he told this to reporter when visiting the Malaysian Pavilion after witnessing a Memorandum of Understanding between InvestSarawak and Surbana Jurong Pte Ltd in conjunction with the United Nation Climate Change Conference (COP28) in Dubai. This achievement is attributed to cutting-edge technology, particularly the incorporation of a new membrane in the electrolysis process. Abang Johari expresses optimism for significant cost reductions in hydrogen production over the next five years, anticipating a decrease in power costs. This move positions hydrogen as a more economical and environmentally friendly energy source. Sarawak’s commitment to incorporating hydrogen into its energy portfolio is evident in ongoing public transport initiatives within the region. “The conversion of H2O into hydrogen and oxygen is fueling public transport, with ongoing tests of Autonomous Rail Rapid Transit (ART) and buses powered by hydrogen,” he said. This transition to hydrogen-powered transportation not only signifies a significant step towards reducing carbon emissions but also underscores Sarawak’s commitment to embracing innovative solutions for a sustainable future. In tandem with technological advancements in hydrogen production, Sarawak is diversifying its energy sources. A pioneering approach involves the utilization of wood pallets as a biomass power source, adding a new dimension to Sarawak’s energy matrix and ensuring a diversified and resilient power supply. Abang Johari added that the state is actively involved in reforestation efforts, creating carbon sinks through the replanting of forests. This dual approach, combining technological innovation and environmental conservation, positions Sarawak at the forefront of sustainable energy transitions. – TVS
