Malaysia Green Hydrogen Industrial Export Hub Development Feasibility Study with Energy Transition Outlook

Executive Viability Abstract

This feasibility study evaluates the establishment of a Green Hydrogen Industrial Export Hub in Malaysia, specifically targeting strategic locations like Bintulu, Sarawak, or Pengerang, Johor. Leveraging Malaysia's National Energy Transition Roadmap (NETR) and the Hydrogen Economy and Technology Roadmap (HETR), the project aims to utilize abundant hydropower and solar resources to produce green hydrogen for the North Asian market (Japan, South Korea) and local industrial decarbonization.

## Market Analysis Malaysia sits at a strategic crossroads for maritime trade. The global green hydrogen market is projected to reach $1.4 trillion by 2050. Specifically, Japan and South Korea have committed to massive hydrogen imports to meet net-zero targets. Malaysia's competitive advantage lies in its existing LNG infrastructure, which can be repurposed or co-located for hydrogen/ammonia export. Local demand is also bolstered by the steel and chemical industries seeking to decarbonize under the Carbon Border Adjustment Mechanism (CBAM). ## Energy Transition Outlook Malaysia's move toward a 70% renewable energy mix by 2050 provides the regulatory tailwind necessary for large-scale electrolysis. The integration of the Sarawak RE grid (hydropower) offers one of the lowest-cost inputs for green hydrogen production globally, estimated at $3.50-$4.50/kg, with a target of reaching $2.00/kg by 2035. ## Capex Summary The estimated Initial Capital Expenditure for a 500MW capacity hub is $1.2 Billion USD. Key components include: - Electrolyzer Stacks (PEM/Alkaline): $450M - Renewable Energy Integration (Solar/Hydro): $400M - Storage and Conversion (Ammonia/LOHC): $250M - Export Terminal Infrastructure: $100M ## Revenue Model Revenue is generated through three primary streams: 1. Long-term Offtake Agreements: 15-20 year contracts with international utilities. 2. Sale of Green Ammonia: Targeted at the maritime bunker fuel and fertilizer markets. 3. Carbon Credits: Monetizing avoided CO2 emissions through international voluntary markets.