Cheaper hydrogen production costs target


Sarawak Premier Tan Sri Abang Johari Tun Openg.- ZULAZHAR SHEBLEE/The Star

KUCHING: The Sarawak government, in partnership with Japan’s ENEOS Corp, is advancing efforts to jointly develop a competitive supply chain for clean hydrogen production in the form of methylcyclohexane (MCH).

The joint development of MCH in the hydrogen supply chain is expected to reduce hydrogen production costs, according to Sarawak Premier Tan Sri Abang Johari Tun Openg.

MCH, classified as a saturated hydrocarbon, can be used as a solvent and for the manufacture of organic chemicals.

State-owned SEDC Energy Sdn Bhd, a subsidiary of Sarawak Economic Development Corp, is in partnership with ENEOS and Japan’s Sumitomo Corp in a major hydrogen manufacturing project – H2ornbill Train – in Petchem Industrial Park, Bintulu.

H2ornbill Train is one of the two hydrogen manufacturing projects that the Sarawak government has ventured into under Sarawak’s green hydrogen economy initiatives.

The other is the H2biscus project involving the collaboration of SEDC Energy, and three South Korean multinationals – Samsung Engineering, Posco and Lotte Chemicals – in developing a green hydrogen derivative facility in Petchem Industrial Park.The H2biscus project is expected to produce 7,000 tonnes per annum of green hydrogen for Sarawak’s domestic consumption,600,000 tonnes per annum of blue ammonia,630,000 tonnes per annum of green ammonia and 460,000 tonnes of green methanol for export.

Both H2ornbill Train and H2biscus manufacturing plants are expected to be operational in 2027.

Abang Johari said the H2ornbill project will convert hydrogen from its gaseous form into liquid to enable large quantities of MCH to be produced and shipped directly to Japan for use in the industries there.

“Originally, we planned to produce hydrogen (in Sarawak) for processing in Japan. But now, with MCH technology, we can process it directly in Sarawak.

“This is a new technology and it could lower hydrogen production costs, benefitting Sarawak as a hydrogen producer and opening up markets, not just in Japan but also potentially for others.

“Initially, we aim to produce 240,000 tonnes of hydrogen by 2028 or 2029,” he said after touring ENEOS central technical research laboratory in Yokohama, according to a statement from the Sarawak Public Communication Unit (Ukas) in the Sarawak Premier department. Abang Johari led a high-powered delegation for a five-day working visit to Japan last week.

In June 2024, Abang Johari launched Malaysia’s first electrolyser assembly and distribution facility at Demak Laut Industrial Park here which has an initial capacity of producing 25 tonnes of hydrogen per day.

He had said the facility would help reduce the cost of producing hydrogen, which is currently quite expensive.

ENEOS, which now supplies about 20% of Japan’s primary energy, aims to make the next generation energy sources, such as hydrogen, synthetic fuels and biofuels the “future norm” in achieving a carbon-neutral society.

The Sarawak Premier and delegation also toured Japan’s Mitsubishi Power Takasago Hydrogen Park and discussed with the company’s top executives on collaborative opportunities and initiatives to strengthen Sarawak’s hydrogen ecosystem.

The park, established in 2022, integrates the development, demonstration and validation of hydrogen production, storage and utilisation technologies at a single location. The visit marked a pivotal step in aligning Sarawak’s hydrogen aspirations with Mitsubishi Power’s advanced hydrogen technologies.

The delegation reviewed the integrated hydrogen value chain at the facility and gained insights into next-generation hydrogen production technologies, including the hydrogen combustion verification process in advanced gas turbines, said Ukas.

Mitsubishi Heavy Industries Ltd GTCC business division, energy systems senior general manager Takuya Murase said Mitsubishi Power is dedicated to providing technological expertise and support as Sarawak pursue its ambition to develop a hydrogen-based economy.

As part of its support for Sarawak’s energy development, Mitsubishi Power had recently supplied a 500 megawatt hydrogen-ready gas turbine for the Miri Combined Cycle Gas Turbine power plant project, developed by Petroleum Sarawak Bhd. The project features a gas turbine capable of burning fuel containing up to 30% of hydrogen.

SEDC Energy is currently developing a hydrogen production plant and refuelling station in Kota Samarahan to support the ambitious multi-billion ringgit Kuching Urban Transport System (Kuts).

Kuts will utilise a hydrogen-powered autonomous rapid transit system (a hybrid of train, bus and tram) expected to commence its passenger services between the populated Samarahan and Kuching Divisions in stages from fourth quarter of 2025.

Sarawak Premier’s working visit also included a visit to the Tokyo Gas Yokohama Techno Station where his delegation was briefed on the production of hydrogen and synthetic e-methanol fuels.

Abang Johari said Sarawak hopes to collaborate with Japan on technology transfer and exchange in the e-methanol industry.

He said although Sarawak does not have synthetic gas, the state possesses natural gas – methane – which is now been used as a resource to combine with carbon dioxide to become raw materials for gas-based products.

The Sarawak Premier also held discussions and explored collaborative opportunities with Japan’s INPEX Corp president and chief executive officer Takayuki Ueda, senior vice-president for Asia Projects Askihiro Watanabe and Malaysia representative and general manager Tatsuya Konishi on oil and gas exploration, renewable energy (RE) and carbon capture, utilisation and storage.

INPEX, a key player in global energy projects across multiple continents, focuses on enhancing the sustainability of its oil and gas operations while expanding its portfolio in five net-zero business sectors.

The Sarawak Premier also held productive talks with Boeing Japan president Eric G John on sustainable aviation fuel (SAF) and RE.

Abang Johari said Sarawak is actively engaged in the development of SAF production as an alternative fuel for the aviation industry in joint research with the Chitose Group of Singapore.

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