By Ashraff Hussni
Malaysia stands at the threshold of a transformative opportunity in the global hydrogen economy. With its strategic location and abundant natural resources, the country is ideally positioned to become a key player in the supply of hydrogen to energy-dependent nations like Japan, Korea, and Singapore. However, this potential can only be realised if industry leaders and government bodies act decisively and in concert, or risk falling behind as other nations advance.
According to Malaysia’s Hydrogen Economy & Technology Roadmap (HETR), hydrogen is set to revolutionise industrial heat, mobility, power generation, and marine applications, promising substantial economic and environmental benefits. Currently, Malaysia produces mostly “grey hydrogen,” which is derived from fossil fuels. The HETR outlines a clear strategy to transition to “green hydrogen,” produced using renewable energy sources such as hydropower from Sarawak and potential solar or ocean energy from Peninsular Malaysia.
Petronas, the state oil and gas company, and its subsidiary Gentari are leading the charge with significant initiatives in blue hydrogen. They are developing a USD 260 million carbon capture and storage facility in Sarawak, poised to be the largest of its kind globally. This ambitious project demonstrates Malaysia’s commitment to the hydrogen economy. By 2027, Gentari aims to begin exporting blue ammonia, produced in collaboration with Canadian and Japanese firms, marking Malaysia’s first major step into the international hydrogen market.
Despite these promising developments, challenges remain. The cost of hydrogen production is still high compared to subsidised fossil fuels, and substantial investments are required to build the necessary infrastructure. However, with strategic funding, incentives, and robust public-private partnerships, these obstacles can be surmounted. The Malaysian government has already introduced financial incentives under the HETR, such as the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE), to encourage the adoption of hydrogen technologies. Additionally, measures are in place to make Fuel Cell Electric Vehicles (FCEVs) more affordable through subsidies and tax exemptions.
Yet, these efforts need to be intensified. Industry players and government bodies must collaborate more aggressively and innovatively. NanoMalaysia, tasked with leading the government’s hydrogen agenda, is at the forefront of this transition. By driving innovation in hydrogen technology and fostering collaborations across the supply chain, NanoMalaysia is ensuring the market readiness of hydrogen technologies. Initiatives like the Mobile Hydrogen Refuelling Station (MHRS) and solid-state hydrogen programs are key to this effort.
Moreover, Malaysia must leverage international best practices and partnerships. By learning from global leaders in hydrogen technology and infrastructure, Malaysia can build a robust local hydrogen economy. Collaborations with international firms, exemplified by Petronas’ partnership with Total Energies SE, should be expanded and deepened.
The time to act is now. The groundwork has been laid, and the potential is immense. However, the window of opportunity is closing. Malaysia must seize this chance to lead in the hydrogen economy or risk being left behind as other nations take the helm. Industry players, government agencies, and all stakeholders must unite, innovate, and invest in hydrogen today to secure a sustainable and prosperous tomorrow.
