March-April. 2026 | @ green

In its April 2026 APAC Hydrogen Insight Report, the council said both projects reduced planned production capacities in 2025, reflecting broader challenges in securing long-term offtake agreements- a key requirement for large-scale hydrogen investments to proceed.

Despite the adjustments, Sarawak remains positioned as one of Malaysia’ s most advanced hydrogen development hubs, supported by strong state backing, international partnerships, and access to low-cost hydropower.

“ Through strong government support and strategic collaborations with Japan and South Korea in developing its flagship hydrogen projects, Sarawak is currently the most advanced state in terms of project implementation and development.

“ Its abundance of hydropower allows competitive renewable energy prices for green hydrogen production.

“ However, some headwinds were identified in 2025, such as Sarawak’ s H2biscus and H2ornbill projects, in collaboration with South Korea and Japan, which were scaled down to lower production capacities due to a lack of demand signals,” EIC said in its report.

TRANSITION REALITY

The H2ornbill project, developed with ENEOS and Sumitomo Corp, is designed to produce around 90,000 metric tonnes of hydrogen annually by 2030. The H2biscus project, involving Samsung Engineering, Posco and Lotte Chemical, targets up to 150,000 tonnes of hydrogen derivatives per year.

Both initiatives remain part of Sarawak’ s broader plan to build export capacity, though timelines for commercial production have been pushed back, with earlier expectations pointing to 2028 pending final investment decisions.

At the national level, Malaysia’ s hydrogen sector continues to advance at a measured pace, with only a limited number of projects reaching final investment decision. At the same time, many remain at the feasibility or planning stage.

Across the Asia Pacific, the EIC report highlighted a wider structural challenge: while hydrogen projects are abundant on paper, execution continues to lag. Weak offtake certainty, infrastructure gaps, permitting delays and financing constraints remain key barriers.

EIC global head of external affairs, Rebecca Groundwater, said the region’ s challenge lies in delivery rather than in project identification.

HYDROGEN DEVELOPMENT PLAN: Visual rendering of the H2biscus project showing the proposed hydrogen production facility under Sarawak’ s clean energy strategy.( Photo by: Samsung E & A).

COMMERCIAL PATHWAYS

“ Like other regions, the Asia Pacific doesn’ t have a problem with developing hydrogen projects on paper, but rather with building them.

“ The projects moving forward are the ones with credible buyers, realistic economics, infrastructure in place and, most importantly, a clear policy direction,” she said.

The report also noted that developers are increasingly adopting a more cautious investment approach, prioritising projects with secured demand and clearer commercial pathways.

“ Without significant reductions in renewable energy costs, green hydrogen will struggle to compete with blue hydrogen and fossil-based alternatives and delay large-scale deployments.”

Despite near-term slowdowns, EIC expects a gradual recovery as market structures mature, supported by stronger policy frameworks and more disciplined capital allocation across the region.

WENG Meng Industries Sdn Bhd has been recognised by the Malaysia Book of Records( MBR) for creating the country’ s first fire-resistant door made using oil palm trunk( OPT) biomass, highlighting a significant development in sustainable construction materials and industrial innovation.

In a statement, MBR said the innovation demonstrated how agricultural waste could be repurposed into high-performance building products, supporting Malaysia’ s transition towards greener manufacturing practices and a more circular economy.

Malaysia, as one of the world’ s largest palm oil producers, oversees about 5.6 million hectares of oil palm plantations, covering roughly 17 per cent of national land use. The sector undergoes continuous replanting cycles, producing substantial volumes of oil palm trunk biomass annually.

However, this resource has historically been underutilised due to challenges in processing and commercial viability.

Weng Meng Industries’ breakthrough helps address this issue by transforming plantation by-products into functional construction components, reducing waste while creating new industrial applications for biomass materials.

MBR Chief Operating Officer Jwan Heah said the record was not only about technological achievement, but also about recognising the potential of turning widely available waste materials into meaningful solutions. He added that such innovation supports efforts to lower carbon emissions and aligns with broader environmental sustainability goals.

Heah further noted that the milestone reflects Malaysia’ s commitment to sustainable development and could encourage more industry players to explore eco-friendly manufacturing alternatives.

Weng Meng Industries Managing

PALM WASTE INNOVATION: Weng Meng Industries’ innovation turned agricultural waste into a high-performance, eco-friendly building product.( Photo by: The Malaysia Book of Records)

Director George Yap said the company’ s work demonstrates how agricultural residues can be engineered into practical, high-value products.

He said the development of a fireresistant door core using oil palm trunk biomass proves that plantation waste can be effectively utilised to produce safe, durable and commercially viable materials, reinforcing both environmental responsibility and industrial progress. – @ green