KUALA LUMPUR (Feb 26): Petronas’ green energy arm Gentari Sdn Bhd has inked a heads of agreement with SEDC Energy Sdn Bhd for the joint development of a centralised hydrogen production hub in Bintulu, Sarawak.

The agreement was signed between Gentari’s unit Gentari Hydrogen Sdn Bhd with SEDC Energy, a unit of Sarawak Economic Development Corp (SEDC), for the development of the hub dubbed Sarawak H2 Hub.

“The planned global-scale hydrogen production hub in Bintulu is intended to serve as the sole supplier of green hydrogen for downstream facilities in the Bintulu division area, managed by a joint venture company to be formed by Gentari and SEDC Energy,” Gentari said in a statement.

The JV Co will also be responsible for “optimising all hydrogen production projects within the region”, the statement added.

This confirms a report by The Edge Malaysia on early Monday, that Gentari and SEDC Energy are forming a joint venture to develop common facilities for the project.

The facilities include pipelines to support two upcoming plants in the hub, one being a hydrogen production plant dubbed Project H2ornbill, and the other a hydrogen derivatives plant named Project H2biscus, The Edge reported.

SEDC Energy are expected to develop these two plants with Japanese and South Korean companies, SEDC Energy CEO Robert Hardin told The Edge.

The development of these green hydrogen projects at the hub in Bintulu, together with a hydrogen production plant and refuelling station at the Rembus Depot — part of the Kuching Urban Transportation System — are expected to be worth about US$4.2 billion or RM20.7 billion.

The agreement signed between Gentari and SEDC Energy follows an earlier strategic collaboration agreement inked between the two parties, to explore potential collaborations in the development and provision of integrated clean energy solutions, and contribution to policy and regulatory development in Sarawak, the statement said.

SEDC Energy has been tasked by the Sarawak government to kickstart the hydrogen ecosystem in the state, in line with Sarawak’s vision to emphasise cleaner energy use.

Gentari is collaborating “to develop the local hydrogen economy”, said Gentari chief hydrogen officer Michèle Azalbert, as the country positions itself as a hydrogen export hub.

“We believe that hydrogen is the way forward and we are committed to contributing towards Sarawak’s Hydrogen Economy Roadmap, in addition to the Malaysian government’s vision and objectives in the Hydrogen Economy and Technology Roadmap [HETR],” Azalbert added.

The strategic partnership “will be a significant undertaking”, said SEDC Energy CEO Robert Hardin, in view that it will spur more developments and attract new investments in the new energy sector.