SEB, Petronas ink MOU on hydrogen production

Chief Minister Datuk Patinggi Abang Johari Tun Openg and others witnessing the signing of MOU ceremony between SEB group chief executive officer Datuk Sharbini Suhaili (bottom left frame) and Petronas executive vice present and chief executive officer (Gas and New Energy) Adnan Zainal Abidin (seated first left in the bottom right frame) accompanied by Petronas president and group chief executive officer Tengku Muhammad Taufik (on Adnan’s left) and Petronas head of Hydrogen Business, Adlan Ahmad.

KUCHING: Sarawak Energy Berhad (SEB) and Petroliam Nasional Berhad (Petronas) signed a memorandum of understanding (MoU) today, formalising a collaboration to explore the commercial production of green hydrogen and its value supply chain in Asia.

SEB was represented by its group chief executive officer Datuk Sharbini Suhaili while executive vice president (Strategy and Corporate Development) Ting Ching Zung witnessed the event.

Petronas was represented by its executive vice present and chief executive officer (Gas and New Energy) Adnan Zainal Abidin with head of Hydrogen Business, Adlan Ahmad as witness.

Chief Minister Datuk Patinggi Abang Johari Tun Openg speaks during the signing of MOU between SEB and Petronas virtually.

Chief Minister Datuk Patinggi Abang Johari Tun Openg witnessed the virtual signing of the agreement that will lead the energy companies to work on a joint techno-commercial evaluation of a large-scale hydrogen production facility.

Also present were SEB chairman Datuk Amar Abdul Hamed Sepawi and Petronas board of directors member Datuk Ibrahim Baki.

The signing marks a significant milestone in Sarawak’s effort to scale up and venture into energy export with hydrogen as an energy carrier to meet global clean energy demand and position Sarawak as the hub for the hydrogen value chain.

The evaluation covers the possibility of utilising Sarawak’s hydropower in the electrolysis process to produce green hydrogen and generate Renewable Energy Certificates in support of the renewable energy market. Data sharing from this collaboration is expected to provide a measure and insights to the potential of a hydrogen supply chain in Asia.

The chief minister commented that the state government was always supportive of hydrogen-related collaborations and research as it firmly believes in the future of hydrogen as a competitive fuel source.

“As you know, we have started with SEB and the relevant parties to explore the potential of hydrogen and how to produce hydrogen from renewable energy resources in Sarawak.

Chief Minister Datuk Patinggi Abang Johari Tun Openg (third left) witnessing the signing of the MOU between SEB and Petronas virtually. Also seen (from left) Petronas Board of Directors member Datuk Ibrahim Baki, SEB chairman Datuk Amar Abdul Hamed Sepawi, SEB executive vice president (Strategy and Corporate Development) Ting Ching Zung and other officials.

“I am confident hydrogen has a key role in a sustainable energy future although production cost is currently high. Over time and with efficient production technology, there is a possibility that the (hydrogen) production cost will reduce so that it is competitive with other available fuels for the world,” he said.

He also hoped that clean energy would become the state’s main target in the process to transform its economy and adding value to the existing state’s resources, noting that the state can exploits its potential based on the world’s need and as a green approach.

At the same time, Sharbini described the collaboration as another significant milestone in line with Sarawak’s aspiration to venture into hydrogen production and utilisation across the various industries.

“SEB believes strategic collaborations like this will benefit all of us in many ways including strengthening our research capabilities and broaden our knowledge in hydrogen-related technology and development as we adapt to the inevitable shift to renewables in the global energy landscape,” he said.