KUCHING: Sarawak Premier Tan Sri Abang Johari Abang Openg is wondering why banks are sceptical about the transition to sustainable energy sources to tackle climate change.
"They are only watching," he said, alluding to banks unwilling to provide loans to projects related to the research and development (R&D) of new and clean energy sources.
"(They think) there is no guarantee it will work and that they will not get their money back," he said when addressing the Borneo Energy Transition Conference here today.
"I say it will work."
He said if the world could transition from coal as energy to fossil fuel, "then don't tell me the transition from fossil fuel to (clean energy like) hydrogen cannot work".
SEDC Energy chief executive officer Robert Hardin said the conference stood as a testament to the scepticism surrounding the new energy sector.
Malaysian Rating Corporation Bhd chief executive officer Datuk Jamaludin Nasir said Malaysia was ranked 35th in the World Economic Forum's 2023 Energy Transition Index, the highest among Asean countries.
He said the recognition underscored "the significant impact of our efforts on the global stage".
He added that it was important for the private and public sectors to participate in this energy transition and collaborate to overcome challenges.
"Energy sector stakeholders need to prioritise investments in renewable energy and cleaner hydrogen production, while financial institutions must innovate and promote green investments."
With Sarawak the forefront state in the co
Abang Johari said he was positioning the state, which is at the forefront of hydrogen R&D and with two hydrogen plants in Bintulu to be built, to become a clean energy supplier to the world.
The two plants, built with South Korean and Japanese expertise, are the H2biscus and H2ornbill plants that will be built at Bintulu's Petchem Industrial Park
They are expected to be operational in 2027.
South Korea's Samsung Engineering, Lotte Chemical and Korea National Oil Corporation today exchanged the joint development agreement documents they had signed earlier with SEDC Energy.
SEDC Energy, with Abang Johari as a witness, also exchanged the heads of agreement document they had signed earlier with Gentari Hydrogen for the joint development of a centralised hydrogen production hub in Bintulu, to be known as Sarawak H2 hub.
Gentari Hydrogen is a subsidiary of clean energy solutions provider Gentari.
Gentari said the hub would serve as the sole supplier of green hydrogen for downstream industries in Bintulu.
The H2 hub, it added, would be managed by a joint venture company to be formed by Gentari and SEDCE.
Michèle Azalbert, chief hydrogen officer of Gentari, said: "At Gentari, we are focused on pursuing collaborations with partners such as SEDC Energy to develop the local hydrogen economy, which will create economic value for the state while positioning the country as a hydrogen export hub.
"We believe hydrogen is the way forward and we are committed to contributing to Sarawak's hydrogen economy roadmap, in addition to the Malaysian government's vision and goals in the hydrogen economy and technology roadmap."