Malaysia

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GH2 Country Portal – Malaysia

Green Hydrogen Vision

Malaysia’s green hydrogen vision focuses on harnessing its abundant renewable energy resources, particularly solar and hydropower, to position itself as a regional leader in green hydrogen production. With its strategic location in Southeast Asia and well-established energy infrastructure, Malaysia aims to develop a sustainable hydrogen economy to support domestic decarbonization and export opportunities. Malaysia seeks to drive economic growth, reduce carbon emissions, and contribute to the global clean energy transition by fostering innovation, attracting investments, and advancing public-private partnerships. 

National Strategy

Malaysia's 2023 Hydrogen Economy and Technology Roadmap (HETR) outlines its ambitious vision to position itself as a leader in the hydrogen economy by 2050, supporting the global push for net-zero emissions. With abundant renewable resources, such as solar, bioenergy, and hydropower, Malaysia plans to develop green hydrogen as a cornerstone for its energy transition. The roadmap focuses on leveraging hydrogen to decarbonise hard-to-abate sectors, including power generation, industry, and transportation while tapping into export opportunities in the Asia-Pacific market.

The HETR emphasizes economic growth through hydrogen adoption, projecting significant revenue generation, job creation, and reductions in greenhouse gas (GHG) emissions. Malaysia’s strategy includes investments in infrastructure, research, and development, as well as research and development, and fostering collaborations to overcome technological and economic challenges across the hydrogen value chain. 

Capacity and Capacity targets

Hydrogen Production Capacity:  

  • Malaysia aims to scale up green hydrogen production by utilizing renewable energy sources like solar, biomass, and hydropower. 
  • By 2030, hydrogen-related projects are expected to contribute to 0.4%–1.3% reduction in GHG emissions, with the potential to expand significantly. 

Export and Domestic Markets:  

  • Malaysia targets RM12.1 billion in hydrogen revenue by 2030 and aims to become a key hydrogen exporter in the Asia-Pacific region, supplying markets such as Japan, South Korea, China, and Singapore. 
  • By 2050, Malaysia's hydrogen production is projected to generate more than RM400 billion in revenue. 

Impact Targets

Economic Growth and Employment: 

  • The roadmap forecasts the creation of 8,000 to 45,000 jobs by 2030, with potential employment exceeding 200,000 jobs by 2050. 
  • Hydrogen adoption across sectors could contribute up to RM61 billion to GDP by 2030. 

Emissions Reductions: 

  • HETR targets a 15% reduction in GHG emissions by 2050 through the widespread deployment of green hydrogen technologies. 
  • Hydrogen uptake will focus on hard-to-electrify sectors like transportation, marine bunkering, aviation fuel, and industrial hubs. 

Energy Security and Integration: 

  • Hydrogen will balance Malaysia’s renewable energy grid, enabling energy storage and ensuring power supply stability. 

Policy Spotlight

  1. A consortium of developers and state agencies has announced a 10GW green hydrogen hub in Sabah, Malaysia, located at Borneo's northern tip. Property developer LBS leads the project, with assistance from Invest Sabah Berhad, a government-backed investment promoter, and the Sabah Forestry Development Authority (SAFODA) and lighting supplier Midwest Green Sdn Bhd. LBS intends to develop a site covering 15,000 and 30,000 acres in Kota Marudu, where it will construct an electrolyser facility with a production capacity of 250,000 tonnes of H2 annually alongside a co-located green industrial park. 

  2. Malaysia's biggest green hydrogen initiative began construction in 2024 following the acquisition of $400 million in financing. Malaysia's most significant green hydrogen facility, a 60MW plant located in Perak, runs on floating solar energy. It has secured 1.88 billion ringgit (approximately $393.6 million) from private investors. This financing arrangement was facilitated by the Singaporean investment company Capitale Ventures, with advisory assistance from Chalfouh LLC. 

Financing

Projected Investments: 

  • Significant investments in hydrogen infrastructure, including production plants, storage facilities, and refueling networks, will be critical to scaling Malaysia's hydrogen economy. 
  • The roadmap identifies public-private partnerships and international collaborations as key funding mechanisms. 

Revenue Potential: 

  • By 2050, Malaysia aims to capture a significant share of the global hydrogen market, generating more than RM400 billion in revenue through domestic use and exports. 

Technology and Innovation Support: 

  • Research, development, and innovation (R&D&I) will be prioritized to reduce the cost of hydrogen technologies and improve efficiency across the value chain. 
  • Malaysia will foster partnerships with international hydrogen leaders and develop skills to build a competitive hydrogen ecosystem. 

Government green hydrogen lead 

Ministry of Science, Technology, and Innovation (MOSTI)