KOTA KINABALU: Sabah is positioning itself to become Malaysia's leading producer of green technology through the development of Ocean Thermal Energy Conversion (OTEC), a cutting-edge initiative that harnesses the state's vast ocean resources.
According to the Energy Commission of Sabah (ECoS) chief executive officer, Datuk Abdul Nasser Abdul Wahid, feasibility studies on OTEC are currently being conducted by three companies and are expected to be completed within two years.
If successful, these studies will pave the way for a pilot project, with full-scale commercial development anticipated within five years.
The University of Technology Malaysia has already carried out marine surveys, focusing on the topography and temperature differences in Sabah’s surrounding waters.
“They found that Sabah has the highest potential for OTEC in Malaysia, with an estimated capacity of 20,000 megawatts. This energy can be used not only for electricity but also for desalinating water and producing green hydrogen through electrolysis,” said Abdul Nasser.
He explained that OTEC technology, which leverages the temperature differences between warm surface seawater and cold deep seawater to produce electricity, marks a significant advancement in Sabah’s renewable energy capabilities. Even if only 1% of the estimated potential is realised, the output would still be considerable.
The primary focus for OTEC development will be in offshore areas near Tawau and Semporna, about 30km from the coastline.
Green hydrogen, a highly sought-after resource produced using renewable energy, is in global demand. Abdul Nasser noted that only a few OTEC plants exist in countries like Japan and the United States, while nations such as India and the United Kingdom are developing laws to support the technology.
“Since our OTEC enactment was gazetted and approved, we've received interest from global parties, including a company from Australia that has presented its proposal,” he told reporters after the launching of ECoS Online Energy Information (EEISy) and Talk2ECoS, here, on Wednesday (Sept 25).
Also present was ECoS chairman Datuk Seri Dr Maximus Ongkili.
On April 25, the Sabah State Legislative Assembly approved the Ocean Thermal Energy Conversion (OTEC) Enactment 2024 and the Energy Commission of Sabah Enactment (Amendment No. 2) 2024, allowing the state, through ECoS, to regulate exploration, construction, and operation of OTEC facilities.
Abdul Nasser said that Sabah’s long-term vision includes exporting green hydrogen and exploring its domestic use in rural areas, further solidifying the state’s role in global green energy production.
While the initial costs for OTEC are high, estimated to be double that of hydroelectric power, the focus will be on producing premium products like green hydrogen, which command higher market prices.
Currently, Sabah’s energy needs are met through natural gas, hydro, and solar power.
However, the state is looking to OTEC and other renewable technologies to support its industrialisation and future energy demands.
This initiative aligns with state and federal goals to transition toward sustainable energy, positioning Sabah as a key player in Malaysia's green energy future.
