ADVANCING JUST ENERGY TRANSITION
Malaysia ’ s Sustainable Energy Development Prospectus
New Energy and Other Alternatives
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WITH MALAYSIA AIMING FOR 70 PER cent renewable energy by 2050 , the government and other energy stakeholders are actively exploring technologies such as green hydrogen and Carbon Capture , Utilisation , and Storage ( CCUS ) to propel the energy sector forward .
Hydrogen , especially green hydrogen produced from renewable energy sources , is seen as the future fuel . By 2050 , the dependence on gas is anticipated to decline , with interconnection and hydrogen assuming more significant roles .
In alignment with the National Energy Policy 2022-2040 ( NEP ) and Malaysia ’ s objective of integrating more sustainable energy sources into the generation mix , battery storage becomes crucial for ensuring the reliability of the nation ’ s grid .
Hydrogen Potential in Malaysia
The Ministry of Science , Technology and Innovation ( MOSTI ) created the Hydrogen Economy and Technology Roadmap ( HETR ) to guide the development of Malaysia ’ s hydrogen economy , acting as a supporting document to NEP . Both the NEP and the HETR are living documents , which shall pave the way to achieving environmentally sustainable , long term energy security for Malaysia , driven by technological innovation .
According to HETR , annually , a minimum of 168 million tonnes of biomass waste is generated in Malaysia . In general , palm oil waste accounts for 94 per cent of biomass feedstock while the remaining contributors are agricultural and forestry by-products , such as wood residues ( four per cent ), rice ( one per cent ), and sugarcane industry wastes ( one per cent ).
Based on the data from the Malaysia Palm Oil Board for 2020 , the amount of solid biomass waste generated from palm oil industry in Malaysia accounts for a total of 98.1 million tonnes . Palm Oil Mill Effluent ( POME ) and Empty Fruit Bunch ( EFB ) generated from mills in
Malaysia amount to 58 million tonnes per year and 20 million tonnes per year respectively ( MPOB 2020 ). Biohydrogen production from POME and EFB through dark fermentation , gasification process and various treatment methods has shown a promising route for green hydrogen production at pilot-scale .
Additionally , Malaysia is blessed with the geography to accommodate hydropower dams which in turn provides electricity to produce green hydrogen . Overall , the total gross hydropower potential documented is about 414,000 GWh per year of which about 123,000 GWh per year is the technical potential for development . About 87,000 GWh ( 70 per cent ) of this energy potential is in Sarawak , 20,000 GWh in Sabah and 16,000 GWh in Peninsular Malaysia .
This scenario will potentially unlock a revenue of RM7.7 billion coming from hydrogen demand through the power generation sector in 2050 . The potential economic benefits from hydrogen under a Business-as-Usual ( BAU ) and Emission-Driven Scenario ( EDS ) will be able to generate a revenue of RM 560.63 billion and RM 776.63 billion , in 2050 respectively .
Grey , Blue and Green Hydrogen in Malaysia
In Malaysia , a significant amount of grey hydrogen is currently produced through various processes within the oil and gas industry , relying on hydrogen supplied from fossil fuels . However , this approach comes with the drawback of greenhouse gas ( GHG ) emissions , making it an unsustainable option for the future . The imperative for a cleaner hydrogen source is evident , leading to the potential classification of grey hydrogen as blue hydrogen through the application of CCUS technology . The global production cost for blue hydrogen ranges between US $ 1.5 / kg H2 and US $ 4 / kg H2 , while green hydrogen , another cleaner alternative , has a production cost between US $ 4 / kg H2 and US $ 6 / kg H2 .
In the short to long term , Malaysia is committed to prioritising blue hydrogen