Malaysia’s government has announced plans to produce 2 million tonnes of blue hydrogen annually by 2030, with further expansion to 16 million tonnes by 2050 under its Hydrogen Economy and Technology Roadmap (HETR).
Key Production Goals and Strategy
The Ministry of Science, Technology and Innovation (MOSTI) will initially focus on converting existing grey hydrogen facilities to blue hydrogen production through 2030. This strategic shift aims to serve key industrial sectors including:
- Metal and steel manufacturing
- Oil and gas refining
- Ammonia production
Phased Implementation Approach
MOSTI Minister Chang Lih Kang outlined a clear transition strategy:
- Short-term: Phase out grey hydrogen production
- Medium-term: Leverage existing infrastructure for blue hydrogen with carbon capture
- Long-term: Transition to green hydrogen production
Economic Incentives and Support
The government has implemented several measures to support hydrogen development:
- Green Investment Tax Allowance
- Green Income Tax Exemption for hydrogen projects
- Planned redirection of energy subsidies toward renewable hydrogen
Market Projections and Revenue Targets
The HETR forecasts significant economic benefits:
- Projected revenue of RM 905 billion ($203 billion) by 2050
- Hydrogen becoming cost-competitive with diesel by 2050
- Green hydrogen achieving cost parity through technological improvements between 2030-2040
Current Development Projects
Several major hydrogen initiatives are already underway in Malaysia:
- KBR’s technology licensing agreement with Lotte Chemical, Korea National Oil Corp, and Samsung Engineering for green ammonia production
- Planned 10GW green hydrogen facility in Sabah, targeting 250,000 tonnes annual production capacity
Looking Ahead
Malaysia’s hydrogen strategy balances immediate industrial needs with long-term sustainability goals. By leveraging existing infrastructure while planning for green hydrogen expansion, the country aims to establish itself as a significant player in the global hydrogen market.
Read More: Breakthrough Catalyst Cuts Hydrogen Production 50%
