Hydrogen is fast becoming a vital pillar in the global transition towards cleaner, more sustainable energy systems. As countries seek to reduce carbon emissions and diversify their energy portfolios, hydrogen offers a promising solution due to its versatility and potential for zero-emission applications. In this evolving energy landscape, Sarawak is emerging as a key player in Southeast Asia’s hydrogen economy, leveraging its abundant natural resources and strategic vision to drive sustainable growth.
To effectively harness hydrogen’s potential, it is essential to understand the various types of hydrogen based on their production methods and environmental impacts. These classifications guide strategic decisions in production, infrastructure development, and policy frameworks.
Types of Hydrogen:
Grey Hydrogen: This is the most common form today, produced by steam methane reforming (SMR) of fossil fuels like natural gas without capturing the resulting carbon dioxide emissions. Grey hydrogen is inexpensive but environmentally problematic due to significant CO₂ emissions.
Blue Hydrogen: Blue hydrogen uses the same SMR process but incorporates carbon capture and storage (CCS) technology to trap and store CO₂ underground, significantly reducing its carbon footprint. It represents a transitional low-carbon option while renewable hydrogen technologies scale up.
Green Hydrogen: The gold standard for sustainability, green hydrogen is generated by electrolyzing water using electricity derived entirely from renewable sources such as hydropower, solar, or wind. It produces zero carbon emissions and is crucial for a truly clean hydrogen economy.
Turquoise Hydrogen: Produced via methane pyrolysis, which splits methane into hydrogen and solid carbon. This emerging technology promises low emissions but is still in developmental phases.
Pink Hydrogen: Produced using nuclear power to generate electricity for electrolysis. This technology offers a clean hydrogen pathway but depends on nuclear infrastructure, which carries its own complexities.
Sarawak’s Strategic Hydrogen Vision
Sarawak’s approach to developing its hydrogen economy is both pragmatic and ambitious, focusing on maximizing green and blue hydrogen production. This strategy capitalizes on the state’s vast renewable energy endowment and substantial natural gas reserves, complemented by its geological capacity for carbon capture.
The recently unveiled Sarawak Hydrogen Economy Roadmap outlines a clear trajectory through 2035 and beyond, emphasizing four core pillars: renewable energy, natural gas utilization, carbon capture and storage, and hydrogen production. This roadmap is designed to ensure Sarawak’s leadership in clean energy innovation while fostering economic diversification and sustainability.
Green Hydrogen: Leveraging Renewable Wealth
Sarawak’s renewable energy potential is a critical asset for green hydrogen production. Over 60% of the state’s land remains densely forested, interspersed with more than 300 rivers, creating ideal conditions for large-scale hydropower generation. Hydropower is already the backbone of Sarawak’s electricity supply, providing clean, reliable, and affordable energy.
In addition to hydropower, Sarawak is innovating with solar energy projects, including floating solar farms on reservoirs. These projects expand renewable capacity and provide the necessary electricity to power electrolyzers for green hydrogen production. Electrolysis uses electric currents to split water molecules into hydrogen and oxygen, a process that is completely emission free when powered by renewables.
Green hydrogen from Sarawak will play a critical role not only domestically but also in regional energy markets, as the state plans to export clean energy to West Kalimantan, Sabah, Brunei, Peninsular Malaysia, and Singapore. This regional interconnection enhances energy security and supports Southeast Asia’s broader clean energy ambitions.
Blue Hydrogen: Transitioning with Carbon Capture
While green hydrogen represents the ultimate goal, blue hydrogen serves as a practical bridge toward full decarbonization. Sarawak controls nearly 60% of Malaysia’s natural gas reserves, providing a plentiful feedstock for hydrogen production. By integrating CCS technology, Sarawak can capture and securely store carbon emissions from hydrogen production, minimizing environmental impact.
Sarawak also possesses over 65% of Malaysia’s geological carbon storage capacity, meaning it can safely store vast quantities of CO₂ underground, reducing greenhouse gas emissions effectively. This integration aligns with global net-zero targets and strengthens Sarawak’s reputation as a responsible energy producer.
Creating an Enabling Environment
Recognizing the transformative potential of hydrogen, Sarawak has proactively established a comprehensive framework to facilitate industry growth. The Distribution of Gas (Amendment) Ordinance, enacted in November 2024 and enforced from March 2025, governs hydrogen production, distribution, and usage. It ensures rigorous safety standards, environmental protections, and investor confidence.
The state is also investing heavily in innovation and capacity-building. Hydrogen hubs and research centers, particularly in Kuching, act as focal points for collaboration between government agencies, industry players, academia, and international partners. These centers foster technology development, pilot projects, and talent cultivation critical elements for long-term success.
Economic and Social Benefits
Beyond environmental gains, the hydrogen economy offers significant socioeconomic advantages for Sarawak. The sector promises to diversify the state’s economy, reducing dependence on fossil fuels and creating new high-skilled employment opportunities. Hydrogen technologies will stimulate industries ranging from manufacturing to transport.
Already, pilot programs are testing hydrogen-powered public transportation, such as buses and Autonomous Rail Rapid Transit (ART), showcasing practical applications that enhance urban mobility while reducing pollution.
Furthermore, by positioning itself as a hydrogen exporter, Sarawak can tap into growing international demand for clean energy, boosting trade and regional cooperation. This export potential will not only generate revenue but also help integrate Southeast Asia’s energy markets.
Community Engagement and Workforce Development
Sarawak understands that community support and skilled human capital are crucial for a thriving hydrogen economy. Public awareness campaigns educate Sarawakians on hydrogen’s role in climate change mitigation and energy security, building broad-based support.
Vocational training programs and university courses focused on hydrogen technology ensure the workforce is equipped to meet future industry needs. By fostering homegrown expertise, Sarawak strengthens its innovation ecosystem and secures sustainable development.
Conclusion
Sarawak’s multi faceted approach to the hydrogen economy anchored in green and blue hydrogen production, supported by a robust legal framework, and driven by innovation and education positions the state to become a reginal clean energy leader. By harnessing its natural endowments and building human and technological capacity, Sarawak is on track to unlock hydrogen’s full potential as a catalyst for sustainable economic growth, environmental stewardship, and social progress in Southeast Asia and beyond
References
BP 3. (2025, May 13). Sarawak takes centre stage as Hydrogen Economy Forum 2025 opens today. Borneo Post Online.
BP 6. (2025, May 13). Abg Jo: We’re determined to be leading regional green economy hub. Borneo Post Online.
Editor AS. (2025, May 13). Sarawak to finalise hydrogen industry regulations, guidelines by year-end, says Premier Abang Johari. DayakDaily.
Sulok Tawie. (2025, May 13). Abang Johari launches Sarawak Hydrogen Economy Roadmap. NST Online; New Straits Times.
