Sarawak Hydrogen Projects Scaled Down Amid Demand Challenges
Sarawak's H2biscus and H2ornbill hydrogen projects have reduced production capacity due to weak demand signals, as reported by EIC. This decision reflects broader challenges in securing offtake agreements and highlights the need for sustained investment in the region's hydrogen market.
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The Energy Industries Council (EIC) reports that Sarawak has scaled down its flagship hydrogen projects, H2biscus and H2ornbill, in response to weak demand signals, impacting planned production capacity for 2025. Currently, Sarawak is advancing five green hydrogen projects with operational capacity expected by 2029, including a partnership with Japan's ENEOS and Sumitomo Corp targeting 90,000 metric tonnes of clean hydrogen annually by 2030.
Meanwhile, Malaysia has four out of 16 identified hydrogen projects reaching final investment decisions (FID). Across Asia Pacific, only 6.46 GW of the 56.35 GW hydrogen pipeline is under construction, with contracting activity declining due to financing and regulatory challenges. Without reductions in renewable energy costs, green hydrogen may struggle to compete against fossil fuel-based alternatives.
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