Malaysia

Sarawak accelerates hydrogen push as diesel volatility drives shift to alternative energy

Rising geopolitical tensions and fluctuating fuel prices are prompting Sarawak to expand its hydrogen and renewable energy strategy

Updated 6 months ago · Published on 20 Apr 2026 8:32AM

Sarawak accelerates hydrogen push as diesel volatility drives shift to alternative energy
Leaders argue that new technology is making clean fuels increasingly cost-competitive - April 20, 2026

THE Sarawak government is intensifying its transition towards alternative energy sources, particularly hydrogen, as global diesel price volatility driven by geopolitical tensions continues to pressure traditional fuel markets.

Sarawak Premier Tan Sri Abang Johari Tun Openg said hydrogen production is expected to become increasingly cost-competitive compared with diesel, supported by advances in electrolysis technology, particularly improvements in membrane efficiency.

“Talking about hydrogen, I have done my homework together with the experts. With today’s diesel prices, the production of hydrogen will be cheaper than diesel; the electrolysis process will be cheaper because of the new membrane in the technology.

“And diesel… with all the geopolitical tension now, I don’t think it will end within this era.

“A lot of problems will continue to arise,” Borneo Post reported him saying at a press conference during the Gabungan Parti Sarawak Convention 2026 at the Borneo Convention Centre Kuching on Sunday.

He said Sarawak was already laying the groundwork for a long-term energy transition, pointing to rural electrification efforts in Baram where diesel-powered generators had been replaced with solar energy systems.

“So, in other words, alternative energy will be used, and we are fortunate – Sarawak is already preparing itself,” he added.

Abang Johari also highlighted infrastructure improvements across the state, including completed bridge projects and expanded road connectivity, which have reduced reliance on ferry services and consequently lowered diesel consumption.

“If diesel prices go up, surely the fares will go up. But now, we can save on diesel.”

He reaffirmed Sarawak’s support for the federal government’s push to expand biodiesel usage, noting that the state’s palm oil industry provides a strong feedstock base for alternative fuel production.

“Yes, because we have palm oil. From palm oil, we produce biodiesel.

“Some people are reluctant to use biodiesel, but now, because of what has happened to fossil fuels, particularly diesel, biodiesel becomes the alternative,” he said.

Abang Johari added that once market conditions stabilise and demand strengthens, Sarawak expects biodiesel to become a key value-added product derived from its palm oil sector, complementing its broader clean energy ambitions. - April 20, 2026

Spotlight

Malaysia

PH denies role in RoS suspension of Perikatan Nasional

Malaysia

Police hunt two suspects after BMW shot at in Sitiawan

By Alfian Z.M. Tahir

Malaysia

Mohamad Hasan turned away from Lendu nomination centre despite having EC pass

Business

Three Malaysian brands rank among Asean's 10 most valuable, led by Petronas

Malaysia

Melaka PRN: 79 candidates vying for 28 state seats

Malaysia

Melaka PRN: Adly Zahari faces three challengers in Bukit Katil

Malaysia

Shuhaily's return to police force remains a ministry matter, AGC says

You may be interested

Malaysia

PKR links rural road project delays to procurement concerns, not cancellation

Malaysia

Yunazri banking on young voters to spring Tanjung Bidara surprise

Malaysia

PN yet to name Kota Laksamana candidate after MIPP's last-minute withdrawal

Malaysia

Woman injured in suspected acid attack by boyfriend in Petaling Jaya

Malaysia

Inflation eases to 1.8% but rising oil and producer costs pose risks

Malaysia

Melaka police deploy 1,159 personnel for state election campaign

Malaysia

Melaka PRN: 189 nomination forms purchased, 45 paid deposits

Malaysia

Govt weighs movement controls for Rohingya refugees, says Zahid