Malaysia — Sarawak, Malaysia's largest state on Borneo, is piloting green hydrogen production powered by its extensive hydroelectric infrastructure (9+ GW installed capacity). The state energy company SEDC Energy is developing hydrogen production facilities targeting export to Japan and South Korea, which have committed to hydrogen as a major energy carrier for decarbonization.
The economics are favorable: Sarawak has surplus hydropower capacity and some of the cheapest electricity in Southeast Asia. Converting excess electricity to hydrogen via electrolysis creates an exportable commodity from otherwise stranded energy. Pilot facilities are testing electrolysis efficiency, hydrogen storage, and transport logistics.
Green hydrogen is a speculative but potentially transformative bet. If hydrogen fuel cells become viable for shipping, heavy transport, or industrial processes (steel, cement), Sarawak's combination of cheap renewable electricity and maritime access (direct shipping to Japan/Korea) positions it as a green hydrogen export hub. The risk is that batteries and direct electrification prove more efficient than hydrogen for most applications, limiting hydrogen to niche industrial uses.