Challenges and Opportunities for Green Hydrogen in Malaysia
Key Ideas
- Gentari, the clean energy solutions arm of Petronas, highlights challenges in Malaysia's green hydrogen industry due to current REC tariffs.
- Government support, such as lower electricity tariffs, is crucial for making green hydrogen more competitive and economically viable in the country.
- Transitioning to green hydrogen is a focus for Gentari, with a strategy to leverage renewable energy sources like hydro, wind, and solar for green electrons.
- Malaysia's hydroelectric infrastructure, particularly in Sarawak, presents a competitive advantage for green hydrogen production due to lower tariffs.
Gentari, the clean energy solutions arm of Petronas, has raised concerns about the challenges faced by Malaysia's green hydrogen industry due to the current Renewable Energy Certificate (REC) tariffs. Wan M. Ikhwan Wan Yusoff, the head of Gentari's Technical Centre of Excellence for Hydrogen, emphasized the need for government support, specifically lower electricity tariffs, to enhance the competitiveness of green hydrogen production. He explained that RECs come with slightly higher tariffs than standard electricity rates, making it crucial to make them more competitive to lower the production cost of green hydrogen. Gentari aims to shift towards green hydrogen by harnessing renewable energy sources like hydro, wind, and solar to produce green electrons. Wan M. Ikhwan highlighted the advantage of Malaysia's hydroelectric infrastructure in Sarawak, where competitive tariffs make green hydrogen production cost-effective. The article also mentions TNBX Sdn Bhd, the single provider of REC in Malaysia, explaining the significance of RECs in enabling companies to claim they have sourced renewable energy, even in areas without direct access to green energy. TNB's Green Electricity Tariff (GET) programme for 2024 offers a quota of 6,600GWh to help consumers meet sustainability goals through cost-effective solutions.
Topics
Production
Renewable Energy
Sustainability
Government Support
Electricity Tariffs
Renewable Energy Certificates
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