Plans unveiled for 10 GW hydrogen production facility in Malaysia

Malaysian LBS Bina Group Berhad, Invest Sabah Berhad, Sabah Forestry Development Authority (SAFODA) and Midwest Green have signed a memorandum of understanding (MoU) for the development and construction of a green hydrogen production facility powered by solar and wind energy as well as a future green industrial park on a potential site ranging from 15,000 acres to 30,000 acres in Kota Marudu, Sabah.

The facility has been targeted to produce 10 GW, generating over 250,000 tonnes of green hydrogen annually. LBS said that the Kota Marudu land is positioned to support green energy generation, “boasting some of the highest solar irradiance levels in Malaysia and consistent high wind speeds.” Additionally, the site’s proximity to nearby seaports is expected to facilitate export logistics, enhancing its potential as a regional green energy hub.

As disclosed, LBS, in partnership with Midwest Green, will collaborate with Invest Sabah and SAFODA to conduct land surveys and site inspections, facilitating the identification of optimal sites. Furthermore, the parties will work together to establish a consortium structure, ensuring alignment with local and international stakeholders interested in this venture. LBS will assume the role of the master developer.

This project is expected to pave the way for future green industrial parks, and according to LBS, its positive impacts are likely to multiply over the coming years. The MoU is viewed as the opening of opportunities for collaborations with various local and international partners in the near future, marking a step towards developing Sabah as a major player within the renewable energy sector.

Tan Sri Dato Sri’ Ir. (Dr) Lim Hock San, LBS Group Executive Chairman, commented: “This MOU underscores our commitment to sustainable development and Malaysia’s green energy agenda. With the immense renewable energy potential of Kota Marudu, we see this as a landmark project that will drive economic growth for Sabah and create lasting job opportunities for local communities. We are honoured to work with our esteemed partners like Invest Sabah, SAFODA and Midwest Green to drive sustainable growth and innovation.”