With the goal of increasingly investing in clean energy alternatives, many countries are turning to a variety of energy sources. Malaysia is not left behind and is about to make an unprecedented move for the country: exporting its first batch of solid green hydrogen to Singapore. The shipment, still in its pilot phase, will be carried out by SEDC Energy (SEDCE), a state-owned company in Sarawak, and is a first step — and a bet — on an emerging market.
Malaysia seeks space in the emerging Asian green hydrogen chain
Green hydrogen is produced carbon-free from renewable sources. Specifically in Malaysia, production takes place at the Darul Hana H2 plant in Kuching, which uses grid electricity and water in a system called PEM, capable of generating 150 kilograms per day. On a global scale, production isn’t as significant, but it’s enough to launch this new field and evolve from there.
But like any business, demand is essential to ensure its viability, and so far, domestic demand remains limited. Sarawak has only ten fuel-cell vehicles, including buses and some Toyota Mirai sedans used by the government. To exploit production potential and avoid idling project capacity, SEDCE decided to export.
Partnership with Chinese company strengthens hydrogen exports
This is where the partnership with the Chinese company Hydrexia Holding comes in. The company is capable of storing hydrogen in magnesium hydride, which converts green hydrogen into a solid state.
This format ensures greater density, and consequently greater safety and ease of transport, without many restrictions, and can be transported by trucks, trains, or ships. From Singapore’s perspective, which is seeking energy alternatives in the face of challenges due to its limited physical space, the operation also represents a feasibility test.
What this means in practice and why it matters to people
It may not seem like a significant move, or just another transaction between governments and companies, but this first step has the potential to generate a significant impact on the regional energy sector. Green hydrogen is one of the main bets for the global energy transition, with solutions already considered safe and economically viable. Furthermore, it is a proven alternative for supplying heavy industries and public transportation.
With the ability to solidify hydrogen, Malaysia helps solve one of the main bottlenecks in any supply chain: the ability to transport the product. This solution, developed with Hydrexia, allows the fuel to be stored at ambient temperatures, significantly reducing the need for customized transportation conditions and consequently reducing risks and costs.
Now, for the consumer, the impact is not yet significant in the short term, but in the medium and long term, with the growth of the business and the tendency is to increase the movement of this market, which may encourage the arrival of more accessible hydrogen-powered vehicles, in addition to enabling the emergence of new businesses in sustainable public transportation.
Malaysia positions itself as a new strategic energy route for the future
Transport from Sarawak to Singapore isn’t the only ambition within this business. It represents just the first step in a larger SEDCE strategy, which includes the construction of another plant in Rembus and participation in other international projects such as the H2ornbill, led by Japan, and the H2biscus, developed by South Korea.
The shipment of solid green hydrogen from Malaysia, despite being the first and also a small volume, opened a window of opportunity for the country in one of the most emerging and discussed markets today: energy transition. With this venture, Malaysia becomes a potential new route for this type of energy in Southeast Asia, with the potential for growth to the point of impacting how countries consume and share energy in the future.