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Premier foresees Sarawak’s lead in country’s renewable energy exports by 2027

Premier foresees Sarawak’s lead in country’s renewable energy exports by 2027

26 Feb 2024

Premier Datuk Patinggi Tan Sri Abang Johari Openg foresees Sarawak leading the charge on renewable energy exports for the country by the year 2027.

He expressed optimism that within three years’ time, the state would have the facilities and technologies required to produce renewable energy, particularly hydrogen.

“By 2027, we will have a plant to produce hydrogen together with South Korean companies namely Lotte Chemical and Samsung Engineering, which have become offtakers to the production of hydrogen.

“At the same time, we will also retain around 7,000 tonnes of hydrogen for domestic use, and this will be the energy for industries that have base in Sarawak,” he told reporters when met after officiating the Borneo Energy Transition Conference (BETC) 2024 here today.

The Energy and Environmental Sustainability Minister said Sarawak is on the right track towards its transition to renewable energy as the state eyes to export renewable energy specifically hydrogen to foreign countries.

“This will increase our Gross Domestic Product (GDP) while at the same time provide new job opportunities for the new generation because this depends on the latest technology.

“Sarawak has all the resources and if we combine these with technology, therefore the state’s potential is very vast especially in terms of the National Energy Transition Roadmap (NETR) policy.

“It is possible that we can become the decisive factor in us transitioning from the old into the new energy,” he said.

He said at the moment, the state has two confirmed offtakers through Japan and South Korea.

“If we were to scale up our production, there is also a possibility for other countries because they would have to comply with green energy.

“What I’m saying here is that Sarawak may one day become a green energy supplier for the whole region depending on the technology that is used in the production of hydrogen,” he said.

Earlier in his speech, Abang Johari said Sarawak is fortunate to have partners from overseas who were willing to invest in the state’s renewable energy ventures.

“However, the question now is that the banks are still undecided. Even through there has been a lot of pressure for us to transition towards green energy, the banks are afraid that we might no be able to pay because there is no guarantee that this will work.

“But to me, it will work because if the transition from coal to fossil fuel worked, don’t tell me that the transition from fossil fuel to renewable energy cannot work,” he said.

The Premier hoped to see the exchange of landmark documents between SEDC Energy (SEDCE) and Gentari Sdn Bhd on Sarawak Hydrogen Hub; joint development agreement with Samsung Engineering, Lotte Chemical, Korea National Oil Corporation, as well as a groundbreaking initiative with Sarawak Metro on the Rembus Hydrogen Plant at BETC today serve as a signal to industry players that the Sarawak government is serious in its mission of producing clean energy for the world.

“Sarawak would like to become a hub, if possible, together with Gentari Sdn Bhd and to be the sole supplier for clean hydrogen for any downstream facilities in the state such as ammonia and methylcyclohexane (MCH).

“This hydrogen hub concept is separated between upstream hydrogen production and downstream hydrogen derivatives.

“This illustrates that the hydrogen hub is able to cater to multiple investors through a plug-and-play concept for investors especially the electrolyser modules and other facilities that can be shared with the hub and managed and operated by SEDCE and Gentari Sdn Bhd,” said Abang Johari.

Also present were Deputy Premier Datuk Amar Dr Sim Kui Hian, Deputy Energy and Environmental Sustainability Minister Datuk Dr Hazland Abang Hipni, Deputy International Trade, Industry and Investment Minister Datuk Dr Malcolm Mussen Lamoh, Sarawak Economic Development Corporation (SEDC) chairman Tan Sri Datuk Amar Abdul Aziz Hussain, and SEDCE chief executive officer Robert Hardin.

Source: Borneo Post