THE world is facing another global oil crisis. Conflicts and supply disruptions have caused oil prices to rise sharply, affecting the cost of living for ordinary people.
Transportation has become more expensive, electricity costs have increased, and household budgets are under pressure.
Businesses are also affected, as rising fuel prices increase production and logistics costs.
For Sabah, which has long depended on oil and gas as an important source of revenue, this situation highlights the risks of relying heavily on fossil fuels.
Prices can fluctuate suddenly, and supply can be unpredictable, creating economic instability for both the state and its residents.
At the same time, this energy crisis presents a unique opportunity for Sabah to explore cleaner, more sustainable energy sources that can provide long-term stability and growth.
Under its long-term development plan, Sabah Maju Jaya 2.0 (SMJ 2.0), the state is focusing on economic growth, social well-being, infrastructure development, and sustainability.
Hydrogen energy fits naturally into this vision.
It is not only a clean and flexible source of power, but it also presents an opportunity to build a new industry that creates jobs, supports local businesses, and strengthens Sabah’s energy security.
Hydrogen is often referred to as the “fuel of the future.” Unlike oil and gas, it produces only water when used and does not emit carbon or other harmful pollutants.
Hydrogen can be used in many ways. It can generate electricity, power vehicles, support industrial processes, and store energy produced from renewable sources such as solar or hydropower.
This flexibility makes hydrogen particularly important for Sabah, where electricity reliability has been a long-standing concern in certain areas.
By storing energy and releasing it when needed, hydrogen can provide a more stable and consistent power supply, helping households, farms, and businesses to operate efficiently.
It is important to emphasize that hydrogen development does not replace Sabah’s immediate priorities.
Many communities in the state still face challenges related to water supply, electricity reliability, and road infrastructure.
These issues remain urgent, and investments must continue to address them.
Hydrogen should be understood as a long-term strategy that runs alongside current infrastructure projects.
By starting with small-scale pilot projects, Sabah can gain experience, test technologies, and gradually expand production without compromising its immediate development needs.
This careful, step-by-step approach ensures that the state can manage risks effectively while planning for the future.
Sabah has several natural advantages that make hydrogen development a practical possibility.
The state is blessed with abundant renewable energy resources. Its rivers are suitable for hydropower, which can provide the clean electricity needed for hydrogen production.
Sabah also receives strong sunlight throughout the year, making solar energy a reliable source.
Additionally, agricultural and forestry activities generate biomass, which can be converted into fuel or used as a feedstock for hydrogen production.
These renewable resources can be harnessed to produce green hydrogen, a fully clean and environmentally friendly form of energy.
The climate and geography of Sabah further support hydrogen production.
The state has good access to water, which is essential for the electrolysis process used to produce hydrogen.
The region’s temperature and humidity conditions are also favourable, providing a natural advantage over other locations that may face limitations due to climate.
With careful planning and investment, Sabah has the potential to become a competitive hydrogen producer in Southeast Asia, offering both domestic energy solutions and export opportunities.
Other regions in Malaysia have already begun to explore hydrogen as a practical energy source.
For example, the Sarawak government has initiated its own hydrogen project, demonstrating that Malaysia is moving toward clean and sustainable energy on a regional scale.
Sabah can learn from Sarawak’s experience, adapt successful strategies to its own local context, and collaborate with partners to develop a hydrogen industry that reflects its unique advantages and needs.
Observing the progress of neighbouring states also provides confidence that hydrogen is not a distant or unrealistic goal, but a tangible opportunity that can be achieved through planning and commitment.
Developing a hydrogen industry can also have significant economic benefits for Sabah.
Investment in hydrogen projects has the potential to create jobs across multiple sectors.
Engineers, technicians, project managers, and skilled workers will be needed to design, operate, and maintain hydrogen plants.
Local companies can become part of the supply chain, providing equipment, materials, logistics, and services.
Over time, a fully developed hydrogen industry can attract both domestic and foreign investment, strengthening Sabah’s economy and creating a more diversified revenue base beyond oil and gas.
At the same time, it is important to manage expectations.
Hydrogen technology is still developing globally, and building the necessary plants and infrastructure requires significant investment.
The cost of production, storage, and transportation remains high, and the technology requires ongoing research to improve efficiency.
Sabah will need strong government support, including clear policies, regulatory frameworks, and incentives to encourage investment.
Cooperation with international experts and companies will also help accelerate knowledge transfer and reduce risks associated with new technologies.
By acknowledging these challenges openly, the state can take a measured, realistic approach to hydrogen development.
Safety and environmental considerations are another critical aspect.
Hydrogen is flammable, and accidents can occur if it is not handled properly.
However, with international safety standards, rigorous training, and careful planning, these risks can be managed effectively.
Environmental concerns, including land use and water consumption, must also be considered in project planning to ensure that hydrogen development does not harm Sabah’s forests, rivers, or wildlife.
Clear guidelines and strict regulations will ensure that hydrogen projects are safe, sustainable, and beneficial for the people of Sabah.
Education and workforce development play an important role in the success of a hydrogen industry.
Universities, polytechnics, and technical training institutions can introduce programs focused on clean energy and hydrogen technology.
By building local expertise, Sabah ensures that the economic benefits of hydrogen development remain within the state.
Young graduates and skilled workers can find opportunities in emerging energy sectors, supporting social inclusiveness and reducing unemployment.
This focus on human capital aligns closely with the objectives of SMJ 2.0, which emphasizes the development of a skilled and adaptable workforce to support long-term economic growth.
Energy security is another long-term benefit of hydrogen.
Producing energy locally reduces dependence on imported fuels, making Sabah more resilient to global price fluctuations and supply disruptions.
This stability not only supports businesses but also helps households manage their energy costs.
By combining renewable energy with hydrogen storage, Sabah can ensure a reliable electricity supply even during periods of low rainfall or reduced sunlight.
This is a strategic advantage that complements SMJ 2.0’s goal of creating a stable and prosperous state.
The most practical way forward is a step-by-step approach.
Sabah can begin with pilot projects to test feasibility, develop technical expertise, and create a framework of safety and regulatory standards.
Lessons learned from early projects can guide larger-scale development over time.
Gradually, a fully integrated hydrogen ecosystem can emerge, supporting industries, transportation, and electricity generation.
Eventually, Sabah could position itself as a regional hydrogen hub, supplying clean energy to neighbouring countries such as Japan, South Korea, and China, which have limited natural energy resources.
In conclusion, the current oil crisis has highlighted the urgent need for Sabah to diversify its energy sources and prepare for a more sustainable future.
Hydrogen energy offers a practical, clean, and flexible solution that aligns closely with the goals of SMJ 2.0.
By investing in hydrogen today, Sabah can create new jobs, attract investment, improve energy security, and protect the environment.
The success of the Sarawak hydrogen initiative shows that Malaysia is moving into a new era of clean energy development.
Sabah has the natural resources, strategic location, and policy framework to follow a similar path, turning today’s energy challenges into a stronger, cleaner, and more resilient future for the state.
The journey will take time and effort. It requires careful planning, government support, collaboration with industry experts, and the active participation of local communities.
But with perseverance, vision, and a practical approach, hydrogen energy can become a cornerstone of Sabah’s sustainable development, transforming challenges into opportunities and ensuring that the state is ready for the energy demands of tomorrow.
