Embracing energy transition: Charting Malaysia’s journey to a net-zero future

TO transform Malaysia's energy industry and lead the way in sustainable development, the nation has set a goal of achieving net-zero emissions by 2050. This objective is driven by a clear vision for a low-carbon future, as highlighted in the National Energy Transition Roadmap (NETR) and the Hydrogen Economy and Technology Roadmap (HETR) and strengthened in the Energy Efficiency and Conservation Act 2023 (EECA). With a strategic focus on sustainability, reliability, and affordability, Malaysia is making significant strides in its energy transition journey. The recent COP28 which Malaysia joined to showcase its unbridled dedication for a net-zero future, has set the tone forward, emphasising the need for a just and equitable transition journey.

Energy Partnerships is imperative in addressing energy trilemma

The journey towards a sustainable energy future is multifaceted, and addressing the energy trilemma requires nurturing partnerships across the energy value chain. These collaborations can enhance energy capacity while reducing emissions in our current systems, while industrial strength decarbonization requires industrial strength collaboration. ABB establishes partnerships with knowledge experts to broaden collaboration and assist industries in identifying high-value technologies and solutions.

Sustainable transition via electrification, automation and digitalisation

As Malaysia advances its National Energy Transition Roadmap (NETR) and the Hydrogen Economy and Technology Roadmap (HETR), the nation is positioning itself as a regional leader in new energy. Electrification serves as a fundamental pillar in advancing towards a more sustainable and resource-efficient future, representing a critical strategy for mitigating carbon emissions from energy production, by shifting away from fossil fuel-dependent processes. By 2050, Malaysia’s population is expected to rise to 40.7 million, and economy will nearly triple in size, with projected 60% increase in demand for energy. It is vital to ensure any new additions must be in the form of net zero carbon emissions while replacing existing need with less carbon intensive supply. Among the notable advancements is the transformation of challenging industrial processes by companies like Finnish engineering firm, Coolbrook- an ABB partner. Through electrification, the firm addresses carbon-heavy processes, curbing emissions by up to 30%. Offshore energy production has also evolved. Fifteen years ago, ABB explored the electrification of oil and gas platforms and today, cost-effective technologies make this a viable option, especially with Malaysia's abundant hydro resources in Sabah and Sarawak. As a leading global technology provider in electrical distribution and management as well as automation solutions, ABB takes great pride in collaborative efforts with customers and partners. We harness our products, solutions, and digital technologies to champion energy efficiency and pave the path toward a sustainable future for society.

For over a century, automation systems have been central to empowering industries providing basic building blocks of our everyday lives – energy, power, water, metals, minerals, chemicals, and transportation – to scale to the needs of a growing population. With Malaysia expected to seize the opportunity to attract global investments in the clean technology sector which hit RM5 trillion in 2022, process automation is the way forward to cater to increasing energy demands from an ever-growing population. Automation is a key aspect to this endeavor by improving efficiency, enhancing grid management, enabling demand-side management, facilitating predictive maintenance, and integrating distributed energy resources. It is an essential enabler for building a more sustainable and resilient energy infrastructure for the future.

Digitalisation is vital in addressing the global climate challenge, by optimizing energy systems and enhancing energy efficiency. Through data-driven decision-making, smart grid management, and demand-side management strategies, digital technologies enable stakeholders to identify energy-saving opportunities, optimize equipment performance, and reduce energy waste. By leveraging advanced analytics and automation, digitalisation empowers the energy sector to transition to a more sustainable, resilient, and efficient energy ecosystem. Malaysia's New Industrial Master Plan (NIMP) 2030 underscores this commitment. ABB is proud to contribute to this vision, with 60 percent of our global revenues generated from technologies directly addressing environmental sustainability. These technologies not only improve energy efficiency, but also facilitate the integration of renewables into the energy mix and conserve raw materials. ABB's technology is deployed in numerous projects worldwide, ensuring uninterrupted operations, resilient supply chains, environmental preservation, and public safety. Given Malaysia's potential, it is essential for the country to prioritise investments in innovative and advanced technology to achieve higher, sustainable productivity, and economic growth

Technical Solutions leading the charge

Malaysia has made commendable strides in implementing strategic policies and investments to achieve sustainable energy goals. While the journey towards net zero emissions shows promise, it requires significant financial investments and strategic decision-making. It is essential to recognise that by 2050, Malaysia's energy mix will still include oil and gas. However, the focus will shift towards minimizing carbon emissions per kilowatt-hour (kWh) through the adoption of newer, more sustainable practices driven by technological innovations and advancements.

Realising the HETR: A hydrogen supply chain powered by strategic partnerships

Green, blue, gray - all forms of hydrogen will play a key role in offering clean, efficient and versatile energy potential.

Green hydrogen as one of the low-carbon solutions, holds immense promise as a crucial pathway to achieve net zero emissions in Malaysia and throughout Asia by 2050, and Malaysia’s HETR, when successfully implemented, would be able to tap into the global green hydrogen market, estimated to be worth at least US$189.19 billion (RM824 billion), by 2050.

Realising the potential that the green hydrogen market holds, there is an increased involvement of Japanese and South Korean giants like IHI, Chiyoda, Mitsubishi, Samsung, and Sumitomo, focusing on establishing a hydrogen supply chain in the region. This is largely centered in Sarawak, with notable projects such as the H2biscus and H2ornbill Projects and the Rembus Depot, which is part of the Kuching Urban Transportation System (KUTS).

Japan and South Korea, driven by the vision of becoming leading hydrogen-importing economies in Asia, are expected to depend significantly on blue and green hydrogen imports due to their forecasted robust domestic hydrogen demand, coupled with limited domestic production potential due to scarce energy resources.

Hydrogen is flammable, so people need to know it's safe before using it as fuel. Think of digital twin as a simulator for plant operators. It shows how equipment behaves in different situations. ABB's Process Power Simulator does this. ABB invested in Key DH Technologies Inc., the parent company of Hydrogen Optimize, to speed up green hydrogen production. This helps industries like energy, metals, and transportation switch to cleaner fuel. The partnership will use HO's RuggedCell™ technology to build the world's largest hydrogen plants.

These solutions can also support Malaysia, which is forecasted to realise between RM49 billion and RM61 billion in additional gross domestic product (GDP) contribution and RM12.1 billion in revenue gains from the hydrogen market by 2030. This projection is corroborated by Deloitte's report titled "Green Hydrogen: Energizing the Path to Net Zero - Deloitte's 2023 Global Green Hydrogen Outlook," which indicates that nearly 70% of the benefits of clean hydrogen could accrue to developing and emerging economies like Malaysia.

Promising outlook for CCS in Malaysia

Carbon Capture and Storage (CCS) is a crucial technology in the journey towards net-zero emissions. McKinsey analysis suggests that CCS uptake in Malaysia needs to grow by 120 times by 2050, capturing an estimated 4.2 to 10.0 gigatons per annum (GTPA) of CO₂. PETRONAS’ Carbon Capture and Sequestration (CCS) project, Kasawari, expected to achieve the first CO2 injection by 2025, is billed as the world’s largest offshore CCS project. Moreover, Malaysia's potential as a regional hub for CO2 storage, with an estimated 149,573 gigatonnes of storage resources, indicates the country's readiness to lead in this domain. To support such technological advancements, ABB has partnered with Pace CCS (UK) and Computer Modelling Group (CMG), Canada, using digital twin technology to simulate and test CCS design concepts.

Powering efficient Power Management Systems

All the above developments underscore the need for an advanced system to monitor, manage, and optimize energy consumption and distribution throughout the energy transition journey. To meet this need, there are already a wide range of solutions available today to allow a more efficient integration of various energy sources. For example, ABB’s OPTIMAX® Energy Management system optimizes the energy requirements of the system and integrates energy sources, which is crucial for balancing the grid. Additionally, ABB’s Power Management System (PMS) & Electrical Control & Monitoring System (ECMS) effectively monitor and control the overall electrical operations, contributing to a more sustainable and efficient energy transition.

Nurturing and training future net-zero talent

Investing in a net-zero workforce early on not only creates employment opportunities, but also equips the new generation of workers with the skills needed to address challenges posed by climate change and other environmental risks. ABB collaborates with universities like University Malaya, Universiti Technology Petronas, Monash University, Multimedia University and many more, in developing holistic growth of individuals, from knowledge and skills building to mentorship programmes. Globally, ABB and Imperial College London has recently extended their partnerships in a dedicated carbon capture pilot plant that will continue to train the net-zero workforce which includes engineers and scientists of the future. More than 4,500 students have had hands-on experience of ABB’s technology solutions at the plant since it opened in 2012.

Malaysia's strides towards addressing climate change and fostering sustainable development are commendable, reflecting a proactive approach and strategic vision. With its forward-thinking policies and initiatives, Malaysia is poised to emerge as a frontrunner in the global energy transition. As the nation continues to make progress, it sets a shining example for the region and beyond, inspiring others to follow suit on the path towards a greener and more sustainable future.

Anders Maltesen,

President of ABB’s Energy Industries in Asia