BANKS ARE ‘ONLY WATCHING’
Abang Johari says they are unwilling to provide loans to clean energy R&D projects
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, referring to banks unwilling to provide loans to projects related to 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. I say it will work.”
Abang Johari said this when addressing the Borneo Energy Transition Conference here.
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.”
Abang Johari said he was positioning Sarawak, which is at the forefront in the country on hydrogen R&D and has two hydrogen plants to be built in Bintulu, to become a clean energy supplier to the world.
The two plants, known as H2biscus and H2ornbill, will be built with South Korean and Japanese expertise 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 yesterday 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 it 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 hub, it added, would be managed by a joint venture company to be formed by Gentari and SEDCE.
Gentari chief hydrogen officer Michèle Azalbert 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.”