Two Million Tonnes of Blue Hydrogen will be produced by 2030 via HETR
Malaysia has announced a plan to produce two million tonnes of blue hydrogen annually by 2030, with a long-term goal of scaling production to 16 million tonnes by 2050.
These targets are outlined under the country’s Hydrogen Economy and Technology Roadmap (HETR), which aims to position Malaysia as a key player in the global hydrogen economy.
Until 2030, Malaysia will prioritise replacing grey hydrogen production with blue hydrogen, using fossil fuels with integrated carbon capture technologies to reduce emissions. According to Chang Lih Kang, Minister of Science, Technology and Innovation (MOSTI), blue hydrogen is critical for supporting metals, steel, oil refining, and ammonia production industries.
Chang explained, “Malaysia plans to phase out fossil-fuel-based grey hydrogen in the short term and transition towards green hydrogen in the long term through HETR. Blue hydrogen will play a crucial role by leveraging existing fossil fuel infrastructure while incorporating carbon capture to reduce emissions.”
From 2030 to 2040, the HETR envisions a shift towards making green hydrogen more cost-competitive through advancements in technology and efficiency. By 2050, the roadmap projects that hydrogen will be cheaper than diesel, supported by subsidies and financial incentives. This plays the utmost importance in redirecting current energy subsidies to renewables like hydrogen to accelerate the transition towards a sustainable energy future.
Financial Incentives and Revenue Projections
Malaysia is rolling out strategies such as the Green Investment Tax Allowance and Green Income Tax Exemption for hydrogen-based projects. These measures attract investment and promote the adoption of cleaner fuels. According to the HETR, successful implementation could generate potential revenues of at least RM 905 billion ($203 billion) by 2050.
Additional and Related Key Points from our press releases
Several key hydrogen initiatives are underway in Malaysia,
- In January, KBR announced it would provide technology licenses and proprietary engineering designs to Lotte Chemical, Korea National Oil Corp, and Samsung Engineering for a green ammonia project.
- Plans are in motion for a 10GW green hydrogen production facility in Sabah, which could produce over 250,000 tonnes of green hydrogen per year, further strengthening Malaysia’s position in the hydrogen market.
Malaysia’s ambitious hydrogen roadmap is a significant step towards becoming a regional and global leader in the hydrogen economy.
By leveraging blue hydrogen in the short term and transitioning to green hydrogen in the long term, the nation will align its energy strategies with sustainability and also welcome economic growth and innovation. With clear policies, financial incentives and ongoing projects, Malaysia will play a significant role in the future of clean energy in Southeast Asia and beyond.
