Malaysian company Semarak Renewable Energy (RE) and China Hydropower (Malaysia), a subsidiary of PowerChina, have signed an agreement to develop Malaysia’s first large-scale green hydrogen production project using floating photovoltaic power generation.
The agreement is worth a total of MYR1.88 billion (approximately $398 million).
The project will be located in Perak and involves the development of green hydrogen production and storage through the deployment of floating photovoltaic power generation, contributing to the shift towards sustainable energy.
The main objectives include the design, procurement, and construction (EPC) of floating photovoltaic power generation and hydrogen production and storage units.
PowerChina stated that the company is leveraging its expertise in the field of new energy and is committed to accelerating the planning and construction of the project and actively supporting Semarak RE to become a developer of the green hydrogen energy industry in Malaysia.
According to a recent study conducted by the German-based management consultancy Roland Berger, by 2030, global hydrogen production will increase to 110 million metric tons (Mt) per year, and probably to 240 Mt by 2040.
The study estimates that the production will grow by an average of 2% per year until 2030, and around 12% of the total volume by 2030 will be green hydrogen, which will be produced in a climate-neutral way using renewable energies.