Sarawak Economic Development Corporation (SEDC), through its wholly owned subsidiary SEDC Energy, has signed an MOU for an incorporated joint venture with Thales New Energy (TNE) and Australian fuel cell manufacturer, H2X Global, for the development of new large-scale facilities for the generation of hydrogen via electrolysis powered by Sarawak’s supply of hydroelectricity.
The green hydrogen will be converted to liquid hydrogen and/or ammonia and exported to TNE’s customers across Asia. The proposed hydrogen facility will be as large as 1.3GW, and capable of producing as much as 170,000 tonnes per year of liquid hydrogen or 970,000 tonnes per year of ammonia for export.
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The facility is proposed to be newly built at the Samalaju Industrial Park and Port. The project will be built over several phases, with first exports possible from 2024/25.
At full production, the facility will offset over 5 million tonnes of carbon dioxide emissions for customers that are currently using natural gas for power. As such, Sarawak will help lead the global transition to zero-carbon emissions and support international aspirations to combat climate change.
The facility will stand as a model for countries in the region looking to develop a renewables industry and to reduce their carbon footprint. The pace of development of hydrogen and other renewable energy through South East Asia is now outstripping many other developed countries.
TNE has undertaken pre-feasibility studies over the past 12 months. Working closely with SEDC Energy and H2X Global, the project will now quickly progress to detailed feasibility and engineering with expectations that the project can secure requisite development approvals in 2022. Construction will soon follow and anticipated first exports in 2024/25.
Given the scale of the project the parties will also look to develop local electrolyser build capabilities in Sarawak. As such, the project complements the recently announced SEDC Energy-H2X Global joint venture to expand Sarawak’s domestic hydrogen strategy for hydrogen transport projects and to expand local manufacturing of fuel cells and other hydrogen related technologies and skills across the State of Sarawak.
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SEDC Energy has developed the strategic blueprint for Sarawak to become a hub for the emerging ASEAN hydrogen energy market in Asia with visionary planning which involves a wide range of hydrogen infrastructure projects.
H2X Global founder and CEO Brendan Norman said Sarawak was already well ahead of most states in the region and was well advanced in the establishment of long term hydrogen production for both domestic and export use.
