Media Statement By Violet Yong:
This amendment bill seeks to introduce new clauses vis-a-vis on all activities relating to hydrogen generation, storage, transportation and distribution.
It is important to ensure that whatever policies and laws that Sarawak introduces in governing hydrogen activities should not just safeguard our energy future, but also for the economic development and safety of our people.
Although this amendment bill outlines a framework for hydrogen’s role in Sarawak’s energy transition, it lacks a critical understanding of the local challenges we face and risks prioritizing corporate or government interests over the broader public interest.
1.Hydrogen generation: Green promises but dirty realities
In terms of hydrogen generation, it is seen as “clean energy” but in reality, it is dirty. We must acknowledge the current realities that Blue hydrogen, which is primarily produced through steam methane reforming (SMR), remains the most common method. This process relies on natural gas and generates substantial carbon emissions. Even when Sarawak government implements carbon capture and storage (CCS) technology, it is expensive and not foolproof. Can Sarawak government really justify pushing ahead with hydrogen production when its environmental benefits remain questionable?
Moreover, green hydrogen, produced through electrolysis powered by renewable energy, is often touted as the ideal. But in Sarawak, how feasible is this? Our dependence on large-scale hydropower projects like the Bakun Dam has caused environmental degradation, displaced communities, and threatened biodiversity. Do we want to repeat these mistakes in the name of hydrogen production? This amendment bill lacks clarity on how we will balance environmental sustainability with hydrogen generation, as it provides no guarantees that we will not replicate the same destructive models we have seen in the past.
2.Storage: The Unseen Costs and Risks
Hydrogen is notoriously difficult to store safely. Is Sarawak well prepared to build a safe and high-pressure storage system? Hydrogen needs to be stored under extreme pressures or as a cryogenic liquid at -253°C. Sarawak has to ensure that there are rules and regulations in place to manage the technical challenges including long-term storage risks following the passing of this amendment bill. As we know, hydrogen can embrittle metals over time, causing storage systems to degrade and fail.
Are we prepared for the safety risks associated with hydrogen storage? A single hydrogen leak could cause catastrophic fires or explosions especially in a region like Sarawak, where communities are often located near industrial sites, this is not just an environmental or economic issue, but a public safety concern.
We need a more detailed plan, particularly regarding inspections, monitoring, and public safety protocols. This amendment bill is alarmingly vague on these issues, putting too much trust in private licensee without a stringent regulatory oversight mechanism.
3.Transportation: A Logistical Nightmare
As Hydrogen has a low energy density by volume, it needs to be either compressed or liquefied for transportation, both of which are costly and require complex infrastructure. In Sarawak, where the road network is still developing, how practical is it to transport hydrogen safely over long distances?
Moreover, the Sarawak government must consider the huge financial commitment to retrofit or build hydrogen-specific pipelines. Are we ready to invest in the infrastructure that would be needed to safely transport hydrogen from production sites to all its designated areas bearing in mind transportation risk is high as hydrogen is prone to leaking through existing pipelines, and even small leaks can lead to explosions if not detected early.
4. Distribution: Who Will Benefit?
When we talk about hydrogen as the fuel of the future, we must also ask, who will benefit from this transition? We are unsure on how hydrogen will be distributed and what role local communities will play in this transition. There is a real risk that hydrogen production, storage, and distribution will become a top-down process, controlled by a few corporations, leaving local communities with little say in how their resources are used or how the risks are managed.
Sarawak has seen this pattern before, particularly in the oil and gas sector, where local communities have often been sidelined, and the profits have not always flowed back to the people. This amendment bill fails to provide any clear guarantees that hydrogen development will benefit the wider population, or that local Sarawakian businesses and industries will have access to the hydrogen economy in a meaningful way. We need clear provisions for local content requirements, ensuring that Sarawak’s own people and companies have a stake in this emerging industry.
5. Safety and Accountability: Where is the Oversight?
Perhaps the most concerning aspect of this amendment bill is the lack of a proper regulatory framework to ensure safety across the hydrogen supply chain. Hydrogen is a volatile substance and if there are no strict safety regulations, we are exposing Sarawakians to unnecessary risks. We need a comprehensive safety standard for enforcement, monitoring, and emergency response.
In case of industrial accidents, who will be held accountable and responsible?
Where is the accountability? Who will be responsible when accidents happen? We should also ensure that tragedy will not happen.
I hope that the state government will take serious consideration of the points I have raised above. With that I conclude. Thank you.
