Major revenue expected from hydrogen

Abang Johari (seated centre) speaking at a press conference. Also present are Minister of Local Government and Housing Datuk Seri Dr Sim Kui Hian (seated left) and Assistant Minister of Infrastructure and Ports Development Datuk Julaihi Narawi (seated right). Standing from left are JKR Sarawak Director Datuk Ir. Zuraimi Sabki, Adun for Simunjan Awla Dris, MBKS Mayor Datuk Wee Hong Seng, MPKS chairman Datuk Peter Minos, Adun for Stakan Datuk Amar Mohammad Ali Mahmud, Adun for Muara Tuang Datuk Idris Buang, Adun for Sadong Jaya Aidel Lariwoo, MP for Samarahan Rubiah Wang, State Secretary Datuk Amar Jaul Samion and Ministry of Infrastructure and Ports Development Permanent Secretary Datuk Safri Zainudin. Photo: Ramidi Subari

KOTA SAMARAHAN: Being the first producer of green hydrogen in the region, there is no shortage of suitors for Sarawak’s latest commodity, said Chief Minister Datuk Patinggi Abang Johari Tun Openg.

“Eneos Corporation and Sumitomo Corporation — both are large international companies, are keen to buy hydrogen produced by Sarawak.

“The two companies are in the market for premium hydrogen — which is based on renewable raw materials,” he said.

He said the present market price for green hydrogen is at $8 per kilogramme and based on the current capacity, it can yield a significant return to the state.

“Eneos which is under Nippon Oil needs 300,000 tonnes per year. Hydrogen is sold by the kilogramme and we will be able to produce 10,000 tonnes per year (from our plant) in Bintulu.

“Just multiply 10,000 (tonnes) with another 1,000 (kg) by $8, that will be our revenue,” he told a press conference here on Saturday.

Abang Johari said he was confident that Sarawak could meet the demands if they scale up their operations.

“We have the capacity to increase (our production), now the plant can produce 10,000 tonnes of hydrogen but they have indicated that they can scale up depending on the demand.

“We are the first country in this part of the world to produce green hydrogen which is renewable. The other type of hydrogen is brown hydrogen which is based on gas.

“It is not considered green as it depends on hydrocarbon which is a depleting material.

“This can create global warming and carbon emissions, (but the one from) our water is not,” he said.

Meanwhile, to incentivise the adoption of hydrogen vehicles, the chief minister also urged the federal government to provide tax exemptions for its purchase.