Sarawak Takes Charge: New Bill to Regulate Hydrogen Distribution in State
Key Ideas
- The Distribution of Gas (Amendment) Bill, 2024 aims to establish a legal framework for regulating hydrogen distribution in Sarawak, covering generation, storage, transportation, and export.
- The bill expands the definition of 'gas' to include hydrogen, introducing specific regulations under a new Part IVA and granting authority to issue licenses for hydrogen-related activities.
- Penalties for unauthorized hydrogen activities include fines up to RM1 million and/or imprisonment, with non-compliance risking penalties of up to RM20 million.
- The amendment empowers the Sarawak Cabinet to impose State-specific rates, levies, taxes, or charges on hydrogen-related activities, aiming to promote economic growth in the hydrogen industry and enable clean energy transition.
The Distribution of Gas (Amendment) Bill, 2024 has been introduced in Sarawak, Malaysia, with the aim of establishing a comprehensive legal framework to regulate the distribution of hydrogen in the State. Minister Julaihi highlighted the need for a review to address hydrogen's unique characteristics and ensure safe generation, storage, and use. The bill expands the definition of 'gas' to include hydrogen and introduces a new section to govern hydrogen-related activities. Licensing authority is granted for various hydrogen uses, with penalties set for unauthorized activities. The amendment also allows for State-specific charges on hydrogen-related activities, aiming to boost economic growth and develop the clean energy sector in Sarawak. Overall, the sentiment towards hydrogen regulation in the article is positive, focusing on the potential for economic growth, investment, and industry development through a transparent regulatory framework.