Hydrogen Energy in Sarawak, Malaysia and the Economy of the Industry.
Sarawak is one of the states in Malaysia that makes an initiative to use renewable energy. They had launched South East Asia’s First Integrated Hydrogen Production Plant and Refuelling Station and unveiled Hydrogen Buses. It shows they had carried out the plan to be the state which uses renewable energy. Not only that, the state had planned and targeted in becoming Malaysia’s green hydrogen production and export hub by 2027.
While Sarawak is achieving its targets, few initiatives have already been made from the year they are starting the business in this industry until 2023. As an example, Sarawak gets into hydrogen-powered fuel cell electric vehicles and the state is aiming to export the bulk of green hydrogen produced from a plant to other countries, such as South Korea. All of these initiatives were made because Sarawak Premier, Tan Sri Abang Johari Tun Openg said to TheStar Online Newspaper that he feels that now is the time for hydrogen. Hydrogen is now prepared to take the lead in the global energy and economic shift after decades of waiting for the promise of hydrogen as an energy carrier.
Talking about the economic view, as the hydrogen energy related business is still new to many countries, it is undeniable that it may help the economy of one country. This is because the hydrogen economy will have growth from time to time. Looking at how the hydrogen industry opens a new door to the business industry, the growth of the economy includes the employment, revenue and investment and also some taxes that will be charged either for state or local revenue. Hence, it clearly shows that the hydrogen economy may influence the growth not only for the industry but also for the state.
Other than that, according to Sarawak Premier, Tan Sri Abang Johari Tun Openg, to ensure that the state government’s plans for the hydrogen economy are successful, Sarawak must generate its own highly skilled labour. This can be said to help the economy because one of the key forces behind the growth of the hydrogen economy was the development of trained human resources.
According to Rinebold and Barton (2018), it had been stated that the supply chain for hydrogen and fuel cells significantly impacted the local economy. It can be said so because in the Northeast Electrochemical Energy Storage Cluster (NEESC), the industry is bringing in more than $1.4 billion in revenue and investment, more than 6,620 direct, indirect, and induced jobs, and $615 million in labour income. Through the numbers, it has been proven that the hydrogen industry does help the growth of the economy.
The hydrogen industry leads to a sustainable hydrogen energy economy. This may not be seen within a short period of time but to forecast the growth of the economy for this industry, it seems to have a long-term development. According to PWC Global (2023), global export and import hubs will emerge, resembling the oil and gas hubs of today, but with new participants in the renewable energy-rich countries. This shows that the industry will enter the future market and be able to push the states which are using it to have a better economy.
It is well aware that hydrogen is good for the environment, but with all of these numbers, it shows another reason for the hydrogen industry to be used. As stated by the International Energy Agency (IEA) in 2019, the world has a significant chance to take use of hydrogen’s huge potential to play a crucial role in a more sustainable and secure energy future.
However, it is needed for every state to have a proper plan or to start slow in the industry. It is necessary to have in-depth knowledge and analysis of the industry. It is important to analyse the strengths, weaknesses, opportunities and threats of the industry as it may give an impact towards the larger scale. As the hydrogen industry may impact the future development, it is crucial to have strategic planning on how to work this out. All of the parties who are involved in this industry either the government, stakeholders or individuals need to take part in taking an active role in order to ensure the growth of a global clean hydrogen industry. Other than that, the everyday use and acceptance of hydrogen must be carefully introduced.
