ADVANCING JUST ENERGY TRANSITION
Malaysia ’ s Sustainable Energy Development Prospectus
SUMMARY OF HETR
Short term ( 2022-2030 ) Mid term ( 2031-2040 ) Long term ( 2041-2050 )
Grey H2 = USD 1.5 / kg Blue H2 = USD 3 / kg
Green H2 = USD 6 / kg
Hydrogen production cost
Grey Hydrogen : |
To be phased out |
Blue Hydrogen : |
US $ 3.71 / kg |
Green |
US $ 4.82 / kg ( Solar ) |
Hydrogen : |
US $ 2.50 / kg ( Hydro ) |
US $ 1.72 / kg ( Biomass ) |
US $ 1.35 / kg ( Biogas ) |
Blue Hydrogen : US $ 4.64 / kg
Green Hydrogen : US $ 2.63 / kg ( Solar ) US $ 2.25 / kg ( Hydro ) US $ 1.72 / kg ( Biomass ) US $ 1.30 / kg ( Biogas )
Long-term strategic goal is to utilise Green Hydrogen
Blue Hydrogen : US $ 5.62 / kg
Green Hydrogen : US $ 1.45 / kg ( Solar ) US $ 2.11 / kg ( Hydro ) US $ 1.72 / kg ( Biomass ) US $ 1.25 / kg ( Biogas )
Environmental contribution |
BAU : EDS : |
0.4 % GHG reduction 1.3 % GHG reduction |
BAU : EDS : |
3 % GHG reduction 8 % GHG reduction |
BAU : EDS : |
6 % GHG reduction 15 % GHG reduction |
Revenue generation |
• BAU : Industrial Use ( Non-Energy and Heat ) RM 7.4 billion
• EDS : Industrial Use ( Non-Energy and Heat ) RM 12.1 billion
• Capturing 10 % of the hydrogen demand from Japan , South Korea and Singapore resulting in revenue of RM20 billion
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• BAU : Industrial Use ( Non-Energy and Heat ) RM 37.1 billion
• EDS : Industrial Use ( Non-Energy and Heat ), Power and Mobility RM 151.8 billion
• Potential and competitive hydrogen export hub generating revenue of RM219 billion
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• BAU : Power , Mobility and Industrial Use ( Non- Energy and Heat ) RM 151.7 billion
• EDS : Power , Mobility and Industrial Use ( Non-Energy and Heat ) & amp ; Marine RM 497.2billion
• Position Malaysia to be a major exporter in APAC and generate revenue of RM409 billion
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Technology agenda |
• Available technologies to demonstrate , scale-up and deploy first ( Build Some )
• Complementary external technologies & solutions to be procured ( Buy Some )
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Increase in the targeted conversion efficiency of the technologies across the hydrogen economy value chain |
Mass deployment in targeted renewable energy sectors ( e . g .: solar , hydroelectric , biomass , OTEC ) |
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Infrastructure and utilisation |
• Export terminal technologies and hydrogen transport technologies between production sites and export terminals
• To pilot utilisation of hydrogen as co-blended fuel
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• Hydrogen used as energy storage in addressing the deployment of variable renewable energy ( VRE )
• Utilise hydrogen as co-blend fuel for power generation and mobility
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Utilise hydrogen in the mobility , industry ( non-energy and heat ), commercial and domestic sector |
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Job creation |
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Business-As-Usual : 168,000 Emission-Driven : 211,680 |
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as its main focus , aiming to convert its significant oil and gas sector into a Hydrogen Economy . Despite the challenge of high capital expenditures hindering the commercial availability of CCUS technologies , strategic investments facilitated by both foreign and domestic direct investments become more practical when other stakeholders from fossil-based sectors are engaged . Moreover , various CO2 capture technologies , including membrane and absorption methods , offer feasible options for efficient CO2 capture , achieving levels below 1 kgCO2 / kg H2 .
Besides focusing on natural gas + CCUS , the co-product hydrogen from existing processing plants that meets certain certification standard or low carbon based on life cycle assessment of carbon footprint may be regarded as blue hydrogen .
In IEA ’ s Net Zero scenario , blue hydrogen is projected to contribute nearly 40 per cent of the total global hydrogen supply by 2050 . This aligns with the Hydrogen Council ’ s findings in the Hydrogen Decarbonisation Pathways , where 60 per cent of the market will be served by green hydrogen , and 40 per cent will be supplied by blue hydrogen .
Malaysia is strategically aiming for green hydrogen , produced from renewable sources like solar , hydropower , and wave energy , in the long term . This shift is crucial for maintaining Malaysia ’ s status as a major energy exporter , prompting a swift transition to green hydrogen .
Malaysian green hydrogen production price stands at USD 6 / kg , being the second most expensive next to turquoise hydrogen . Regarding the cost competitiveness , the supply of both blue and green hydrogen is needed for Malaysia to meet the projected demand for clean hydrogen to achieve decarbonisation targets by 2050 .
Green Hydrogen Development
The 2021 pre-feasibility study concluded that the collaborative effort of SEDC Energy Sdn Bhd with other stakeholders in the green hydrogen and ammonia project is anticipated to yield significant results . The project aims to produce 7,000 tons / year of green hydrogen for local use in Sarawak , along with 600,000 tons / year of blue ammonia , 630,000 tons / year of green ammonia , and 460,000 tons / year of green methanol . The H2biscus Project is poised to become a benchmark on the international stage , showcasing renewable energy trading and hydrogen transportation between South Korea and Malaysia .