The Malaysian government is working on a framework to meet its 2050 net-zero emissions goal which includes exploring a voluntary carbon market, carbon pricing mechanisms such as carbon tax, and expanding green technology tax incentives. Petronas, the largest state-owned energy company has been at the forefront of the initiatives, collaborating with local and foreign partners on green energy and zero-carbon projects.
In March 2022, Petronas teamed up with a Japan-based company, Eneos on studies for commercial hydrogen production and conversion project in Kerteh, Terengganu state. The partners will pursue technical and commercial studies for the production of low carbon hydrogen from Petronas’ facilities, green hydrogen generation from a new hydro-powered electrolyzer facility, and hydrogen conversion into methylcyclohexane (MCH). By 2027, the facilities are projected to create a total hydrogen production and conversion capacity of up to 50,000 tonnes per annum for export in MCH form to Japan. The project could be the world’s first commercial-scale hydrogen-to-MCH.
Petronas has also partnered with Shell to assess carbon capture and storage (CCS) prospects in Malaysia. The joint study and collaboration agreement was conducted between Petronas and Sarawak Shell to perform an integrated CCS Area Development Plan research and identify decarbonization services to Shell’s local and cross-border facilities. Petronas has also signed an agreement with South Korean firm, Posco International Corporation to identify suitable technology within the scope of carbon capture.
Other than Petronas, Sarawak Economic Development Corporation (SEDC) through its subsidiary SEDC Energy Sdn Bhd has formed a collaboration with South Korean firms Samsung Engineering Co Ltd, Lotte Chemical and Posco to construct a green hydrogen and ammonia project in Sarawak. The H2biscus project aims to convert green hydrogen/methanol and blue hydrogen into ammonia as well as to produce eco-friendly products.
(Sources: The Edge Markets; Upstream Online; The Malaysian Reserve)
