Kuching: Sarawak’s green hydrogen ambitions must translate into commercially viable projects, with SEDC Energy urged to secure committed buyers, address rising costs and explain repeated delays to key developments.
Speaking during the debate on the Supply (2027) Bill at the Sarawak Legislative Assembly sitting, ADUN for Pending, Violet Yong, said Sarawak had yet to demonstrate a commercially viable, large-scale hydrogen industry despite years of announcements and international engagements.
She described green hydrogen as a major priority for Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, who has promoted Sarawak’s green energy ambitions through engagements with industry players in Japan, South Korea and Germany.
“Please lah, do not break YAB Premier’s heart,” she said, urging SEDC Energy to turn the Premier’s vision into tangible results.
She recalled that in November 2020, the Bintulu hydrogen facility was expected to be ready by 2023, with an annual production capacity of up to 10,000 tonnes.
“2023 came, but no project. Then came H2biscus and H2ornbill, both expected to operate by 2027. Now we hear about downscaling, high costs, uncertain buyers and delays to 2028 or 2029.
“First 2023, then 2027, then 2028, then 2029. The deadlines keep moving, but where are the results?” she asked.
She also highlighted the cost challenges, citing SEDC Energy’s chairman as saying hydrogen production could cost below RM20 per kilogramme locally but rise to around RM50 after compression, cooling and shipping to Japan.
“Producing hydrogen is one thing; finding buyers willing to pay for it is another,” she said.
She called on SEDC Energy to disclose whether confirmed buyers and binding offtake agreements had been secured, the purchase volumes and prices, and the expected financial returns for Sarawak.
“We know new technology comes with risks, and the market can change. But that is no excuse for failing to explain delays and what went wrong. Do not simply announce another timeline and expect the public to celebrate.
“Our YAB Premier has done almost everything to promote green hydrogen except personally fill the hydrogen tank,” she said.
Without committed buyers, tangible progress and a viable business model, she warned, Sarawak’s hydrogen dream could remain just a dream.
“Perhaps SEDC Energy should conduct one more feasibility study urgently, this time on how to mend a broken heart,” she added.
