Sabah ventures into tapping thermal energy from the sea
Published on: Sun, May 25, 2025
By: David Thien Text Size: Chief Minister Datuk Seri Hajiji Noor said these studies will be completed within a year. (AFP pic) THE passing of the Ocean Thermal Energy Conversion (OTEC) Enactment 2024 in the State Assembly on April 25, last year, makes Sabah the first in Asean to come up with a blueprint on OTEC development. Following Sabah's lead, the Sarawak State Government also announced interest in expanding its renewable energy sources portfolio by tapping ocean thermal energy. OTEC is an innovative technology that converts the sea's thermal energy into electricity. This new cheaper, greener energy from an innovative technology involves harnessing the temperature difference between warm surface seawater and cold deep seawater to generate clean energy. Based on research, Sabah has the potential of generating up to 20,000 megawatts (MW) of electricity, comprising 15,000MW in the west coast waters and 5,000MW in the east coast. But its full implementation is expected to take about five years. 'Sabah is surrounded by vast oceans, making it the ideal location for this technology as research findings have indicated that certain areas in the state have the potential to generate up to 20,000MW of electricity which could be used to produce green hydrogen, a highly sought-after energy source to achieve net zero carbon emissions goals,' said ECoS CEO Datuk Abdul Nasser Abdul Wahid.
Advertisement 'If we can successfully develop one per cent of 20,000MW, it is already 200MW which is already big. The potential of OTEC is really huge,' he said. The two areas identified as suitable for OTEC development are the South China Sea on the west coast and Tawau-Semporna deep sea on the east coast. Tapping the energy 15km from the shore is seen as the most viable 'low-hanging fruit' compared to doing so 100km offshore. Chief Minister Datuk Seri Hajiji Noor said this would pave the way for the development of OTEC as a new source of renewable energy and as one of the main initiatives under the State's Blue Economy which was commended by the Prime Minister for its game-changer direction. The development of OTEC technology aligns with the Sabah Energy Roadmap and Master Plan 2040 (SE-RAMP 2040) launched in September 2023 to increase the renewable energy mix and identify new energy sources and technologies for the long term. If implemented successfully, OTEC would make a major impact as a sustainable green energy solution desired by all countries. It will help Sabah and Malaysia to achieve some Sustainable Development Goals in its decarbonisation target and increase its renewable energy mix in its energy transition journey towards net zero target. The journey towards achieving net zero carbon emissions has created more innovation, collaboration and inclusivity opportunities. Three Malaysian companies have been authorised to conduct year-long feasibility studies off Tawau-Semporna deep sea waters and submit their plans to the Energy Commission of Sabah (ECoS) for approval and implementation. A preliminary feasibility study is also being conducted by the UTM Ocean Thermal Energy Centre, through collaboration between Universiti Teknologi Malaysia (UTM) and Universiti Malaysia Sabah (UMS) for the development of a potential OTEC plant project in Sabah. 'The Prime Minister acknowledged the importance of Sabah's Blue Economy. A seminar was held as a follow-up to maintain the momentum,' Hajiji said. The seminar being referred to was the 'Sabah International Blue Economy Conference 2024 (SIBEC)' organised by Invest Sabah, ECoS and SMJ Energy last year. 'We want to create awareness on OTEC and its technology which is not new. It will increase our renewable energy mix and position Sabah as such a game changer centre of excellence and a beacon of sustainable resilience as a prime investment destination,' said CEO of Invest Sabah Berhad, Dr Firdausi Suffian. He said this industry would help create jobs and attract direct foreign investments to Sabah with the development of downstream secondary products such as marine culture products and drinking water to further generate economic development to be a powerhouse in Malaysia, strong into innovative, regenerative blue economy drive. Innovative new renewable energy source It is time for Sabahans to think outside the box and be open towards adopting new ways, knowledge and technology to accelerate progress and development. Chief Coordinating Officer of Sabah Maju Jaya Secretariat Datuk (Datu) Rosmadi Datu Sulai, said this to emphasize the state's vision for a regenerative blue economy in his speech at the 'Ocean Thermal Energy Conversion (OTEC) Seminar' at the Shangri-La Tanjung Aru Resort on Wednesday. He underscored the need to transition from traditional industries to innovative, sustainable sectors, which will not only spur economic development but also generate substantial job opportunities for the people of Sabah as Sabah is making significant strides in renewable energy, with a strong focus on Ocean Thermal Energy Conversion (OTEC). Dr. Firdausi Suffian, Chief Executive Officer of Invest Sabah Berhad, announced that Sabah is leading the way in renewable energy, particularly through its championing of Ocean Thermal Energy Conversion (OTEC), establishing itself as a key player in sustainable energy solutions. 'With a focus on creating a favourable business environment, Sabah presents unique opportunities for both local and international investors eager to engage with its rich natural resources and strong infrastructure,' he said. ECoS CEO Datuk Ir. Abdul Nasser bin Abdul Wahid elaborated on the Commission's regulatory role in overseeing OTEC projects. He emphasised the importance of aligning these initiatives with the state's economic interests while ensuring environmental sustainability. 'Identifying potential sites for OTEC development on both the West and East Coasts of Sabah is underway, paving the way for a sustainable energy future,' he said. At the event, industry leaders from Deep Sea Energy Australia, Global OTEC UK, Ocean Thermal Energy Services (OTES), Satu Teguh International Berhad, and Sinar Development & Consultancy Sdn Bhd met to explore OTEC's potential in Sabah. Their discussions covered its technological, economic, and environmental benefits, providing key insights for the region. With strong collaboration between government, industry, and international partners, Sabah is positioning itself as a regional leader in renewable energy. By embracing OTEC, the state aims to foster sustainable growth and gain prominence in the global renewable energy sector. Move can benefit coastal cities, islands FOUNDER and CEO of Global Otec, Dan Grech, said his company's mission is to commercialise Otec so that tropical islands and coastal cities can access cheap, clean and secure energy by replacing fossil fuels. He said Sabah's vast Otec resources can not only power Sabah's clean and green energy demands but also create export opportunities. 'A successful pilot project will unlock direct foreign investment into subsequent projects, attracting billions of dollars of investment to generate clean electricity at scale. 'Public awareness and policy support is crucial as Otec remains relatively unknown, with limited understanding among governments and the public.' He stressed that raising awareness and implementing supportive policies are crucial for accelerating adoption as prototypes and small-scale plants face high capital expenditures (Capex) and cost of energy (LCOS), making private investment challenging without government support and financial incentives. Otec is a century old technology. In the 1880s, at the time when the British North Borneo Chartered Company was set up, French physicist Jacques Arsene d'Arsonval developed the first practical Otec system. By 1930, his student George Claude built the first Otec plant in Cuba. 'During the 1970s and 1980s, the United States and Japan led experimentations with OTEC. Over the years, there have been other small-scale and non-commercial implementations. 'While small scale OTEC projects have proven reliability, such as those in Hawaii and Japan, scaling up to commercial plants – for example, 10 MW, is the technical limit using today's technology,' said Dan. He cited South Korea is testing its 1 MW-sized Otec plant on a barge known as 'K — OTEC1000' since September 2019. 'Otec harnesses the thermal gradient of tropical oceans, providing a continuous, renewable energy source. 'With an estimated global potential of 8,000 GW, Otec could significantly contribute to decarbonisation efforts, promote biodiversity conservation with sustainable resource use and contribute to global climate resilience.' He also said the Ocean Thermal Energy Conversion set up off Tawau-Semporna must avoid being sited in contested zones claimed by Indonesia. Malaysia is set to launch its first hybrid Ocean Thermal Energy Conversion (H-OTEC) plant, the first in South East Asia soon.
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