Semarak RE secures funding for Malaysia’s largest green hydrogen project


(Photo: iStock)

Malaysia’s Semarak Renewable Energy (Semarak RE) successfully secured a financing package of RM1.88 billion from Singaporean investment firm Captiale Ventures on Feb. 20 for its green hydrogen project in Perak.

Shahil Ishak, Semarak RE managing director said the project has garnered huge interest from foreign investors who see the immense potential of hydrogen in shaping the future of energy.

Drawing parallels with Japanese carmakers like Toyota and Honda, which heavily invested in hydrogen technology for cars, Shahil expressed enthusiasm about the transformative impact on various sectors, especially shipping and automotive.

Shahil emphasized not only the project’s viability but also its profitability, aligning with the growing demand for sustainable solutions, in order to encourage local investors and government’s involvement.
This project involves developing green hydrogen production using floating solar power generation, storage, and logistics promising a significant shift towards sustainable energy practices.

Shahil pointed out that green hydrogen production relies solely on clean energy supplies, setting it apart from conventional hydrogen sources like grey hydrogen from fossil fuels or blue hydrogen from natural gas, making it a greener alternative.

Earlier on Jan. 17, PowerChina’s subsidiary China Hydropower and Semarak RE signed an RM1.88 billion deal involving the green hydrogen project.

While the facility’s annual H2 production capacity of around 6,000 tons makes it the largest in the country so far, it could soon be outpaced by two projects being developed in Sarawak.
A 150,000 tons-a-year project developed by Korean firms Samsung Engineering, Lotte Chemical, and Korea National Oil Corporation, as well as Malaysia’s SEDC Energy is currently under way, the start of construction due at the end of this year.

Both Sarawak projects plan to utilize hydropower, which supplies over two thirds of the state’s electricity, and export most of the H2 produced to other Asian nations. 

Malaysian government calculated in its hydrogen roadmap that it could see a cumulative 648 billion ringgits in revenue from H2 exports up to 2050.

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