Hydrogen Futures for Malaysia: Techno-Economic, Environmental, and Policy Pathways through Sarawak’s Renewable Transition

Michael Sillang George Albert; Susie Patricia Bujang

Authors

Michael Sillang George Albert Department of Electrical Engineering, Politeknik Mukah, KM 7.5 Jalan Oya, 96400, Mukah, Sarawak, Malaysia
Susie Patricia Bujang Department of Electrical Engineering, Politeknik Mukah, KM 7.5 Jalan Oya, 96400, Mukah, Sarawak, Malaysia

Keywords:

Green hydrogen, Sarawak, levelised cost of hydrogen, life-cycle assessment, carbon capture and storage, energy policy

Abstract

This paper critically examines hydrogen development in Malaysia, focusing on Sarawak’s renewable-electricity resources and the conditions required to establish a credible low-carbon hydrogen value chain. Rather than presenting an unreported computer simulation, the study uses a structured, literature-based comparative assessment of three pathways: hydropower-powered electrolysis, solar-powered electrolysis, and natural-gas reforming with carbon capture and storage (CCS). The assessment synthesises published techno-economic and life-cycle evidence with policy and infrastructure information to compare cost drivers, emissions boundaries, system requirements, and implementation risks. Malaysia’s Hydrogen Economy & Technology Roadmap provides modelled 2030 cost benchmarks of USD 2.50/kg H₂ for mini-hydropower-powered PEM electrolysis, USD 3.03/kg H₂ for electrolysis using excess hydropower electricity, USD 1.72/kg H₂ for solar-PV-powered PEM electrolysis without incentives, USD 1.35/kg H₂ for the solar-PV pathway with incentives, and USD 3.71/kg H₂ for natural-gas steam methane reforming with carbon capture and storage (NG-SMR-CCUS). These are roadmap scenario projections, not observed market prices or calculations performed in this study. Published life-cycle studies also show that hydrogen carbon intensity varies with electricity source, methane leakage, capture performance, upstream emissions, and system boundary. The comparison therefore supports conditional rather than absolute conclusions: Sarawak’s hydropower may provide an advantage where electricity is genuinely low-carbon and available at a competitive opportunity cost, while solar and blue-hydrogen pathways require transparent accounting of incentives, utilisation, methane, and residual emissions. The paper identifies priorities for cost-data disclosure, life-cycle certification, shared infrastructure, offtake development, and inclusive community governance. Its contribution is a transparent screening framework linking production pathways to environmental integrity and regional implementation conditions, while identifying the additional data required for a reproducible project-level assessment.

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