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BusinessToday
a day ago
- Business
- BusinessToday
Refuelling Sarawak's Growth
Sarawak is fast positioning itself as Malaysia's clean energy powerhouse with bold plans to quadruple power generation to 15GW by 2035. A recent field trip by CIMB Research to the state revealed that major shifts are underway — not just in energy, but also in infrastructure, digitalisation, and industrial expansion — aligned with Sarawak's Post COVID-19 Development Strategy 2030 (PCDS 2030). CIMB analysts identified key beneficiaries of the state's growth plans ahead of its next election, due by April 2027. Infrastructure giants like Gamuda and IJM, as well as Sarawak-based names Cahya Mata, Ibraco, Solarvest, CCK, and Supreme Consolidated, are all poised to ride the wave of development. A Green Leap Forward Sarawak's clean energy agenda is being driven by a pivot away from mega dams toward cascading hydro, floating solar, pumped hydro, and integrated hydro-solar projects. Its landmark hydrogen programmes, H2ornbill and H2biscus, aim to generate over 240,000 tonnes of hydrogen annually by 2029, with exports targeted at Japan and South Korea. The state's strategic shift includes deprioritising coal and rare earth mining, while doubling down on green cement, silica-based solar glass, and biofuels. Major infrastructure upgrades, including a RM4 billion water grid, are also underway to support these ambitions. Industrial Parks and Transport Mega-Projects Sarawak plans to construct 10 new industrial parks and 6 agro-parks, alongside the expansion of existing industrial hubs such as Samalaju Industrial Park (SIP) and Petchem Industrial Park in Kidurong. With strong demand, only 12% of land at SIP remains available, despite already attracting RM57 billion in investments. Infrastructure development is also intensifying. The state is pursuing transformative projects such as a new airport and deep seaport in Kuching, the Lawas Airport and port complex, and major road, water, and utility upgrades. The Kuching Urban Transportation System (KUTS), featuring hydrogen-powered Autonomous Rapid Transit (ART), is a headline initiative under Sarawak Metro, expected to begin operations in 2028. Phase 1 of KUTS, valued at over RM6 billion, will span 70km across 28 stations. Hydrogen fuel cell vehicles will be supported by a purpose-built depot in Rembus, and a RM122 million contract for 55 feeder buses has already been awarded. Strategic Investment and Clean Energy Partnerships Sarawak's investment agency, InvestSarawak, operating under MINTRED, has been actively securing green investments. A notable development was the signing of an MoU with China's CRE International in 2024 to explore USD1.5 billion (RM6.4 billion) worth of solar, wind, and energy storage projects with a capacity target of 2GW. MINTRED has also launched ENBASE, a digital platform to support entrepreneurial development, and is spearheading efforts to attract investments in semiconductors, medical devices, and green hydrogen. Deputy Premier Datuk Amar Awang Tengah Ali Hassan recently led a trade mission to France, engaging with private equity firm Ardian on high-tech sector opportunities. SCORE and the Corridor Vision Driving long-term industrialisation is the Sarawak Corridor of Renewable Energy (SCORE), which spans 80% of the state. Managed by RECODA, SCORE has already secured RM127 billion in approved investments across 464 projects, mainly in energy-intensive sectors. RECODA also oversees over 250 infrastructure projects and administers social programmes focused on poverty reduction, workforce upskilling, and rural development. Its regional development arms — URDA, HDA, and NRDA — have tailored master plans to ensure inclusive and area-specific progress. Election-Led Re-Rating Opportunities With the next Sarawak state election expected before April 2027, CIMB foresees a potential re-rating of Sarawak-linked stocks, particularly in infrastructure and consumer sectors. Companies like Gamuda and IJM are favoured for their involvement in road and public transport contracts, while Cahya Mata, Ibraco, Solarvest, CCK, and Supreme stand to benefit from surging state-level economic activity. However, risks remain. These include funding and talent constraints, rising competition from foreign contractors, and the still-limited participation of public-listed players in large hydrogen or hydroelectric ventures. Looking ahead, Sarawak's clear policy direction reinforces the state's vision to become a high-income and developed state by 2030. With a record-high RM15.8 billion budget for 2025 and 70% allocated to development, the transformation is not just aspirational — it's already underway. Related
Borneo Post
10-07-2025
- Business
- Borneo Post
Green nitrogen fixation identified as key frontier in Sarawak's hydrogen economy, says Premier
Abang Johari delivers his keynote address in Tokyo, Japan. – Ukas photo KUCHING (July 10): Green nitrogen fixation has been identified as a promising frontier in advancing the hydrogen economy in Sarawak, said Datuk Patinggi Tan Sri Abang Johari Tun Openg. The Premier said the emerging technology holds strategic potential for Sarawak, particularly in enabling efficient storage and long-distance transportation of hydrogen. 'I am also keeping a close watch on emerging technologies, particularly the Top 10 Emerging Technologies, recently published by the World Economic Forum, that could further transform the hydrogen value chain. 'One of the new frontiers is green nitrogen fixation, where renewable energy is used to produce ammonia as a hydrogen carrier. Ammonia enables efficient storage and transport of hydrogen—crucial for long-distance trade and integration into hard-to-abate sectors like shipping and agriculture. 'This aligns well with Sarawak's ambition to become a key hydrogen hub for Asean, and we are closely following developments in emerging electrochemical and bio-based ammonia production pathways that can support a fully decarbonised supply chain,' he said in his keynote address titled 'Sarawak's Hydrogen Vision: Catalysing Green Growth for Asean and Beyond' at the World Hydrogen Asia 2025 in Tokyo, Japan, today. The Premier said Sarawak's hydrogen strategy is being driven by its Hydrogen Economy Roadmap (SHER), launched earlier this year. SHER outlines five key priorities, including scaling hydrogen production, accelerating domestic applications, securing international offtake, establishing a Hydrogen Certification Platform, and investing in technology and innovation. In line with its strategy, Sarawak is also investing in infrastructure and projects that are already in motion. These include the H2biscus and H2ornbill projects currently in the Front-End Engineering Design (FEED) phase, as well as the Rembus Hydrogen Plant, which will supply green hydrogen to power 38 ART trams and 55 hydrogen feeder buses under the Kuching Urban Transportation System (KUTS). abang johari green nitrogen fixation lead tokyo World Hydrogen Asia 2025
Borneo Post
11-06-2025
- Business
- Borneo Post
Hydrogen: Sarawak must balance ambition with commercial reality
Sarawak is on a promising hydrogen path but requires a cautious and commercially grounded approach to development. KUCHING: Sarawak's push to become a green hydrogen exporter depends not just on infrastructure and technical ability, but also on the commercial viability of its project especially in securing committed buyers and meeting global standards for safety, efficiency and bankability. This was the key message from Jerin Raj, managing director for Asia Pacific at global engineering and infrastructure firm Black & Veatch, on Sarawak's readiness and long-term prospects in the green hydrogen space. Raj, who has worked in Sarawak's since 2011 and lived in Kuching for several years, said the state is on a promising path but urged a cautious and commercially grounded approach to development. To note, Sarawak is aiming to export green hydrogen by 2030. Currently, it is spearheading two flagship projects currently in the Front-End Engineering Design (FEED) phase expected to complete by end of this year, namely the H2ornbill and H2biscus Project. Combined, Sarawak will be producing up to 240,000 metric tonnes of green hydrogen per year. Jerin Raj. 'On one hand, having timelines creates focus and discipline, while on the other, it is important to remember that Sarawak is on a journey and is heading in the right direction,' he said in an exclusive interview with The Borneo Post. 'What gives me confidence is the leadership and collaboration at the heart of the development. The right organisations are being brought in to develop the sector in the right way,' he said. He stressed that long-term success will only come if Sarawak's hydrogen industry develops with sound technical and commercial pathways. 'If the development is done right and goes through the right technical and commercial pathways to make the investments sustainable, ultimately this will provide the most benefit to the region and its people over the long term,' he said. Bankability, according to Raj, hinges on having viable and committed hydrogen buyers which requires not just technological readiness, but committed offtakers. He said investors want confidence that facilities will be completed on schedule, operate reliably and provide stable returns. At the of the day, he said investors want to reduce and manage their risk as much as possible, and receive steady and sustained returns from their investments over time. 'Hydrogen is still a new industry, so the most critical questions remain customer-focused: who will buy the hydrogen, at what price, in what volumes, and how will it be delivered?' he said, adding that globally, first wave of viable hydrogen projects only moved forward because they had committed offtakers and strong commercial propositions. This highlights a central challenge in scaling up hydrogen. While its versatility across sectors is an advantage, it also means demand must be cultivated across a fragmented group of end-users. Raj noted that governments play a key role in aligning investment timelines with actual demand to avoid mismatches in supply and uptake. 'As a new industry, the state has to continue focus on safety and setting the best practice standards. This can't simply be relying on existing oil and gas standards,' he said. Don't rush into construction From a technical perspective, Raj cautioned against rushing into construction or appointing engineering, procurement and construction (EPC) contractors too early especially in the development process. He noted that hydrogen related infrastructure are first-of-a-kind projects, unlike traditional power plants, and they lack a wide pool of reference examples. 'Globally, only a few such ventures have reached full financing. 'This is why we advocate developers to go through the Front-End Loading process, and working through stage gates, and ask the hard questions both technically and financially. Raj drew from Black & Veatch's experience in delivering or constructing over 245MW of green hydrogen capacity worldwide to drive home the point that doing the groundwork properly is essential. That includes site evaluation, technical studies, and commercial analysis before moving to execution. According to Raj, another often-overlooked element in hydrogen development is water. Green hydrogen is produced by using renewable energy to split water through electrolysis — a process that requires ultra-pure water. Raj explained that it takes roughly nine litres of ultra-pure water to produce one kilogram of hydrogen, and poor water quality can lead to lower efficiency, higher costs and even equipment damage. 'If the quality of water supply is poor, then the water will need further treatment before being used in hydrogen production. 'Treating water to an appropriate quality level can be time-consuming and costly. Furthermore, the disposal of wastewater generated from the treatment process can be challenging and may result in environmental impacts if not properly handled.' For Sarawak to compete globally, he said, water treatment and supply must be treated as a core part of project planning, not an afterthought. When asked whether Sarawak could scale up hydrogen production without destabilising domestic electricity supply, Raj was optimistic. With over 60 per cent of its current power generation already coming from renewable sources and abundant natural gas reserves, Raj said Sarawak has a strong foundation. 'Sarawak has great potential as a clean energy hub. It has abundant natural resources, including natural gas, and therefore has a strategic advantage that can be harnessed to develop a balanced energy mix both for domestic use and export. He noted that curtailment of renewable energy, where surplus generation is wasted due to lack of demand, is challenging in many power grids. However, Raj said using that excess power to produce hydrogen is a practical solution. 'Using excess energy that is developed to produce hydrogen in these cases is certainly a feasible consideration. 'More than sixty percent of power generation in Sarawak is already from renewable energy and it has the potential to produce more. 'Natural gas will also play an important role given its availability. Such facilities complement renewables on grids today and, in the future, they can be also used to co-fire hydrogen,' he noted. While Black & Veatch conducted a feasibility study on hydrogen commercialisation as part of the TNB–Petronas Joint Feasibility Study towards Malaysia's Net Zero 2050 goal, Raj declined to draw comparisons between Peninsular Malaysia and Sarawak. 'It's not particularly productive to compare. We still need to think of hydrogen development on a project-by-project basis, proving the commercial readiness of each proposed project,' he said. He stressed that the global energy transition doesn't hinge on a single solution, but rather a full ecosystem of clean energy technologies. 'If we take a step back, our world's energy future relies on scaling renewables, enhancing storage and increasing grid stability. 'There's not one thing that will drive these objectives, but more so the entire ecosystem of our power industry, and hydrogen can play an important role in providing sustainable and long-term energy storage. 'This means, in terms of drivers, whether it is Peninsular or East Malaysia, hydrogen can help improve a nation's or region's energy security and may also emerge as a key fuel for other applications,' he said. This, he said, is the test Sarawak must meet to ensure its projects are not only technically sound, but also commercially viable, bankable and built with long-term competitiveness in mind. hydrogen hydrogen production renewable energy
Borneo Post
29-05-2025
- Business
- Borneo Post
Siemens Energy backs Sarawak's H2ornbill project with key tech contributions
Dr Hazland (left) and the delegates shared insights and views on advancing Sarawak's renewable energy goals. KUCHING (May 29): Siemens Energy continues to demonstrate strong support for Sarawak's renewable energy ambitions, particularly through the supply of electrolysers and compressors crucial to the H2ornbill project, said deputy minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni. The assurance was given during a courtesy call by Siemens Energy at Dr Hazland's office here on Monday. The delegation was led by Siemens Energy Executive Board Member and Executive Vice President, Karim Amin, who is also the Gas Services Asia Pacific chief executive officer. The meeting reaffirmed the shared commitment to building a sustainable energy future for Sarawak and the broader region, according to a statement from the ministry. 'The H2ornbill project leverages Sarawak's abundant renewable resources to produce green hydrogen for both domestic use and export,' Dr Hazland said in the statement. He also stressed the importance of sustained collaboration between the government and industry players to ensure the success of the state's green energy roadmap. 'Siemens Energy's contributions – including advanced electrolysers and high-performance compressors – are instrumental in enabling efficient and scalable hydrogen production,' he added. Dr Hazland noted that the courtesy call served as a platform to explore future collaboration opportunities in areas such as decarbonisation, energy efficiency, and technology transfer, all of which are keys to accelerating Sarawak's clean energy transition. He also expressed appreciation for Siemens Energy's significant role in helping Sarawak position itself as a regional leader in sustainable and low-carbon energy solutions. Also present were Senior Vice President Gas Services Asia-Pacific (APAC) Je Jun Oh, Siemens Energy Malaysia Managing Director Azli Mohamed, and Vice President Gas Services APAC Vivek Tanu Chauhan. Dr Hazland Abang Hipni H2ornbill Siemens Energy
Borneo Post
28-05-2025
- Business
- Borneo Post
Sarawak gears up to be Asean aerospace hub, plans industrial park
Awang Tengah said the development of Aerospace Industrial Park will support high-value aerospace manufacturing, aircraft maintenance, repair and overhaul, and sustainable aviation fuel research. – Bernama file photo KUCHING (May 28): Sarawak is gearing up to become a competitive aerospace hub in the Asean region with plans to establish an Aerospace Industrial Park. Deputy Premier Datuk Amar Awang Tengah Ali Hasan said the development of this industrial park will support high-value aerospace manufacturing, aircraft maintenance, repair and overhaul, and sustainable aviation fuel research. 'We are partnering with Airbus to expand the aerospace industry, create high-value job opportunities and attract foreign investment,' he said in is ministerial winding-up speech at the State Legislative Assembly (DUN) Sitting today. Awang Tengah, who is International Trade, Industry and Investment Minister, said the global aerospace industry is projected to broaden in 2025, accelerated by technological advancements, sustainability initiatives and increasing air demand. 'As industry continues to evolve, Sarawak is actively developing our aerospace capabilities, focusing on aviation, space technology and satellite launch potential.' He said the newly established Sarawak Aerospace Advisory Council will spearhead aerospace industry development by enhancing education, workforce training and forging global partnerships to drive future investment and accelerate industry growth. 'With a strong emphasis on talent development, Sarawak has launched the Aerospace Academy at the Centre of Technology Excellence Sarawak (Centexs) Lundu and i-CATS University College's Faculty of Aerospace Engineering, equipping future professionals with hands-on expertise and globally recognised qualifications,' he added. On another matter, Awang Tengah said Sarawak is emerging as a regional leader in Southeast Asia's hydrogen economy, leveraging strategic investment opportunities through the Sarawak Green hydrogen hub in Bintulu and the upcoming hub in Kuching. 'These integrated facilities operate on a 'plug-and-play' model, enabling multiple investors to co-locate hydrogen projects without requiring standalone infrastructure. 'This approach optimises efficiency, reduces costs and accelerates hydrogen deployment, attracting global investors to Sarawak's hydrogen ecosystem.' He said SEDC Energy and clean energy solutions provider Gentari continue to advance the Sarawak Green Hydrogen Hub, with plans for a joint venture company to develop centralised investor facilities. 'The hub is currently in its Scope Development and Engineering phase. Meanwhile, flagship projects H2ornbill and H2biscus are progressing toward Front-End-Engineering-Design completion by year-end. 'Malaysia and Japan have also reaffirmed their commitment to hydrogen collaboration, solidifying Sarawak's leadership,' he said. He said the Distribution of Gas Ordinance was amended in November 2024 to ensure safe, responsible and structured development of hydrogen activities. 'This milestone legislation, which came into force in March 2025, reinforces investor confidence and ensures the sustainable growth of Sarawak's hydrogen economy,' said Awang Tengah. aerospace hub Aerospace Industrial Park Awang Tengah Ali Hasan lead
