Sarawak’s ambitions to become a green hydrogen export hub have gained renewed momentum with ACWA Power reaffirming its partnership with SEDC Energy Sdn Bhd (SEDCE) to pursue multi-gigawatt renewable-powered hydrogen production in the Malaysian state.
During a courtesy visit to Sarawak Premier Abang Johari Tun Openg, ACWA Power founder and chairman Mohammad Abunayyan signaled the company’s intent to replicate elements of its NEOM Green Hydrogen Project in Saudi Arabia — a US$8.4 billion venture that targets 4 GW of renewable power and 600 tones of green hydrogen output per day. This benchmark underscores the scale Sarawak could be aiming for, though the region faces different market conditions and infrastructure constraints.
The proposed Sarawak facility is being designed for up to 4 GW of captive renewable energy generation, supporting 2 GW of electrolyzer capacity. Such a configuration would allow for both export-oriented production and domestic decarbonization initiatives. However, replicating NEOM’s scale in Southeast Asia will depend on grid integration, cost-competitiveness of renewable power, and the ability to secure long-term offtake agreements in volatile global hydrogen markets.
The partnership is nested within ACWA Power’s broader US$10 billion investment pledge to Malaysia, announced during the ASEAN–GCC Summit in May 2024. Beyond the hydrogen plant, discussions are underway with Sarawak Energy Berhad (SEB) to develop floating solar installations at the Batang Ai and Murum hydroelectric dams, indicating a diversification of renewable inputs for future hydrogen production.
Both ACWA Power and SEDCE are working closely with Sarawak’s Ministry of Utilities and Telecommunications and Ministry of Energy and Environmental Sustainability to align projects with the Post Covid-19 Development Strategy 2030, the National Energy Transition Roadmap, and the Sarawak Hydrogen Economy Roadmap. Regulatory clarity and infrastructure readiness remain pivotal, especially if Sarawak is to capture export market share before competing projects in Australia and the Middle East scale up.
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