Malaysia is stepping into a new era of clean energy development through its ambitious green hydrogen and carbon capture initiatives. With strong government backing and rising global partnerships, the country is moving toward becoming a major player in Asia’s hydrogen economy.
The Malaysia green hydrogen market was valued at USD 23.94 million in 2024. It is projected to grow at an impressive compound annual growth rate (CAGR) of 39.43% from 2025 to 2033, reaching USD 664.79 million by 2033. This rapid rise reflects Malaysia’s clear vision to diversify its energy mix, reduce carbon emissions, and position itself at the forefront of regional decarbonization efforts.
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Sarawak Leads Malaysia’s Hydrogen Drive
Sarawak has emerged as the focal point of Malaysia’s hydrogen journey. The state aims to become ASEAN’s green hydrogen hub by leveraging its abundant hydropower potential. By 2035, Sarawak targets to achieve 15 GW of renewable energy capacity, marking a major leap in clean energy generation.
Two key projects, H2ornbill and H2biscus, are central to this ambition. Once fully operational, they are expected to produce around 240,000 tons of green hydrogen annually. These initiatives not only position Sarawak among leading global producers—potentially surpassing even large-scale markets like Saudi Arabia—but also highlight Malaysia’s readiness to compete in hydrogen exports.
The state’s strategic partnerships with Japan and South Korea demonstrate its global outlook. Both countries view Malaysian hydrogen as a key component of their own net-zero strategies, setting the stage for strong regional cooperation in hydrogen trade and technology sharing.
Hydrogen and CCUS: Malaysia’s Integrated Energy Transition
At the national level, Malaysia’s energy transition framework is guided by two key policy blueprints: the National Hydrogen Economy and Technology Roadmap (HETR) and the National Energy Transition Roadmap (NETR). Together, they outline a structured pathway that includes phased infrastructure development, regulatory clarity, and capacity building to ensure sustainable hydrogen adoption.
Malaysia’s approach goes beyond hydrogen alone. It integrates carbon capture, utilization, and storage (CCUS) into the broader clean energy ecosystem. This alignment ensures that hydrogen production and industrial decarbonization progress hand in hand, reinforcing the country’s net-zero commitment while stimulating new industrial growth.
Early-stage initiatives by national energy firms are already gaining traction under these frameworks. With public-private partnerships accelerating investment and technology transfer, Malaysia is creating an enabling environment for the green hydrogen economy to flourish.
A Future Fueled by Clean Energy
Malaysia’s coordinated push for green hydrogen reflects a bold commitment to sustainability and innovation. The government’s long-term roadmaps, Sarawak’s pioneering projects, and private-sector collaboration all point to a future where hydrogen plays a central role in powering industries, transportation, and exports.
If successful, Malaysia will not only achieve its net-zero goals but also position itself as a regional leader in clean energy infrastructure—setting an example for other Southeast Asian nations in the global race toward decarbonization.
