he Premier holding a bottle containing aviation fuel derived from microalgae, during an exhibition held during the Fifth International Energy Week at Borneo Convention Centre Kuching, in June 2023. — Photo from the Office of Premier of Sarawak
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THE euphoric promise of tomorrow holds sway. The strategic plans have been made, the blueprint set in motion, and the ambitious vision is ablaze. Sarawak is on track to forge new ground and make the transition to a green hydrogen economy that is environmentally-friendly.
It has gone beyond a statement of economic principles and indicators. It now encompasses a defining narrative that embraces a broad range of opportunities and challenges, including the complex but unified consideration of issues like social justice, environmental sustainability, carbon reduction, and equity.
GDP per capita above national average
Sarawak is able to stay committed to its transformational plan and even go above and beyond the planned course toforge new ground, thanks to political stability and visionary leadership, which are two important motivating factors.
With its GDP per capita (RM80,857) exceeding the national GDP per capita in 2022 – an improvement over 2021 – it is progressing and climbing the economic curve in an impressive manner.
A different approach to growth and development called the ‘green economy’ has the potential to enhance not only economic and quality of life improvements, but also social and environmental well-being. Supporting the creation and uptake of environmentally-friendly technologies is an important aspect of a green economy strategy.
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Sarawak is committed to becoming a regional leader in the green economy and has introduced far-reaching policies and plans to achieve the best results for both businesses and the environment.
Broadening the green base
In the greening agenda, Sarawak under Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has put its best foot forward and as art of the ongoing effort to broaden the greening base and lower the carbon level, initiatives are being taken to investigate and expand the application of the processed algae across the manufacturing sector.
Prime Minister Datuk Seri Anwar Ibrahim unashamedly acknowledges that Sarawak is ahead of Putrajaya on the hydrogen agenda and green economy narrative.
The opportunity has triggered the interest of foreign businesses and investors who are eager to work with local business owners to further investigate the commercial viability of algae.
Hydrogen production
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It is commendable that Premier Abang Johari is managing Sarawak’s smooth and successful transition to a hydrogen economy with little hitches. Two significant initiatives to produce hydrogen in Bintulu Petchem Industrial Park in 2027, H2biscus and H2ornbill, are deserving of recognition.
The plants will create new hydrogen-based industries like those that produce fuel cells, electrolysers, and environmentallyfriendly chemicals in addition to producing green hydrogen.
The foundation of Sarawak’s green hydrogen economy would be H2biscus and H2ornbill, which would also serve as a model project on a global scale.
According to earlier reports, the H2biscus project is anticipated to produce 7,000 tonnes per year of green hydrogen for Sarawak’s domestic use, 600,000 tonnes per year of blue ammonia, 630,000 tonnes per year of green ammonia, and 460,000 tonnes per year of green methanol for export.
Renewable energy
Sarawak is poised to begin large-scale commercial production of green hydrogen by 2027 towards promoting renewable energy and reducing the carbon footprint.
In this, Sarawak is working with Korea and Japan. The hydrogen will go to Korea and the state will benefit from large export earnings.
With Japan, the collaboration is to produce green hydrogen for domestic use as well as export to Japan and Singapore. Sarawak has deservedly earned its commanding presence in the Far East as a lading producer of hydrogen.
ART to run on hydrogen
A direct beneficiary of the green hydrogen production is the Autonomous Rapid Transit (ART) system for Kuching that runs on hydrogen. It is expected to start operating commercial capacity by the end of 2025. ART system features trackless trams with rubber tyres that run on tarmac rather than rails.
A hydrogen production plant and refuelling station to support the Kuching Urban Transportation System (KUTS) project is also being developed by SEDC Energy, adding to the expanding narrative on hydrogen and its usage.
Abang Johari witnessing the agreement documents’ exchange between Petronas Technology Ventures and SEDC Energy. — Photo from the Office of Premier of Sarawak
The Kota Samarahan hydrogen production facility is anticipated to be finished in 2025. A hydrogen-powered ART system – a combination of a train, bus, and tram – will be used by the KUTS, which is expected to cost RM6 billion when fully constructed.
It will lower airpollution and carbon emissions from the transportation sector. The problem of congested roads between Kuching and Kota Samarahan will also be eased with the introduction of ART.
Post-Covid-19 Development Strategy
All of the hydrogen-related initiatives began coming into focus during the post-Covid-19 era, following the launch of the Post-Covid-19 Development Strategy (PCDS) 2030 by the Sarawak government, which is a thorough plan and blueprint for reviving the state economy and paving the way for a sustainable future for the populace.
Why hydrogen? And what is Sarawak’s hydrogen strategy?
Sarawak has taken a brave and bold step by starting the hydrogen mission to cut down on petroleum use, greenhouse gas emissions, and air pollution as well as to make hydrogen and hydrogen fuel cell technologies more widely commercialised.
Five strategic drivers
The Sarawak government has set in motion five strategic drivers, namely, production and storage, transportation, commercialisation, applcation and research and development.
Sarawak is poised to become the first hydrogen-driven economy in South-East Asia, and already it is stepping up efforts to speed up the use of cleaner hydrogen energy sources.
The switch to a hydrogen-driven economy is expected to benefit the state in a number of ways, including lowered carbon emissions, increased energy security, and potential for economic growth and job creation.
Sarawak’s hydrogen production initiative will, on a larger scale, pave the way for sustainable development in South-East Asia – with tenacity, careful planning and support from the government, businesses, and people.
Microalgae
Sarawak has taken a progressive step to explore microalgae as a potential source of renewable energy. Integrated into the green economy agenda with potential as an economic driver is microalgae. Sarawak’s plan to expand microalgae cultivation to 1,000 acres in order to produce 500,000 tonnes of crude algae oil, or renewable oil, yearly is wellplanned and strategic.
A crude algae oil extraction rate of about 37 per cent from algae biomass corresponds to about 10,000 barrels of oil per day in terms of economic production. Microalgae-based fuels offer a potential substitute for depleting and carbon-emitting fossil fuels in the long run.
File photo shows a worker carrying out the filtering process in microalgae production, at the outdoor algae cultivation facility in SBC.
This may well mean that Sarawak does not have to look for oil anymore offshore or onshore as we can have our ‘farmers’ to grow oil more sustainably.
The potential of this natural product speaks volumes about the innovative technology that has been used. It will not only be a valuable addition to help drive our economy, but it will also make a significant contribution to achieving our 2030 Green Economy agenda and provide Sarawak with a new source of income.
Microalgae offer great potential to produce Sustainable Aviation Fuel (SAF), which is crucial to te aviation industry to achieve net zero emissions by 2050. And the Premier has proven it, having flown to Langkawi from Kuching in a plane using SAF.
More than that, it also proves that Sarawak is able to produce safe and reliable SAF for commercial aircraft use.
File photo shows an Airbus A350-900 plane being refuelled with SAF at France’s Roissy Airport. Microalgae offer great potential to produce SAF, which is crucial to the aviation industry to achieve net zero emissions by 2050. — AFP photo
Microalgae are a sustainable, renewable resource that would not compete with food sources and can provide a solution. In Sarawak, there is sufficient sunlight, a warm tropical climate and an abundance of seawater, which create the ideal conditions for farming the oil source continuously and sustainably.
Currently, there are two facilities that are cultivating algae with different technologies.
The first facility, on solar platform, is a collaboration between Sarawak Energy Bhd (SEB), Saraak Biodiversity Centre (SBC), Eneos Corporation and Chitose Group from Japan at Sejingkat.
The other facility employs the use of tanks and sea water, and is a collaboration between SEDC Energy and Petronas in Demak Laut.
Algae mass production
Another first for Sarawak is the setting up of the world’s largest mass microalgae biomass production facility, the Chitose Carbon Capture Central (C4), spanning about five hectares in Sejingkat, Kuching.
It is a collaboration between SBC, SEB as well as Chitose Laboratory and Eneos Corp from Japan.
Photo shows the C4, the world’s largest mass microalgae biomass production facility.
As more and more governments seek to find ways to handle the compounding crises of climate change, a pandemic, and other development challenges, the concept of a green economy has received significant international attention over the past few years. Sarawak has stepped up to the plate and is moving ahead of many states in South-East Asia.
Governments are crucia in hastening the shift to a green economy. Intricate frameworks, rules, and policies can be created to channel important investments in the direction of the green economy.
Carbon pricing is a useful strategy for influencing the actions and priorities of heavily-polluting industries.
* Toman Mamora is ‘Tokoh Media Sarawak 2022’, recipient of Shell Journalism Gold Award (1996) and AZAM Best Writer Gold Award (1998). He remains true to his decades-long passion for critical writing as he seeks to gain insight into some untold stories of societal value.
