New Energy & Technology

Energy transition is a roadmap for the country for its future energy industry landscape.The country energy transition is strategically to meet the low carbon emission target and at the same time to keep the socioeconomic development are progressing. As the nation embraces innovation, sustainability, and a commitment to global climate agreements, National Energy Transition Roadmap (NETR) has been established focusing on the four guiding principles.

National Energy Policy (DTN) 2022-2040

The National Energy Policy (DTN) 2022-2040 provides a roadmap for a sustainable, prosperous, and resilient future in Malaysia.

It aims to benefit the economy, society, and the environment, ensuring long-term growth and stability for the nation.

National Energy Transition Roadmap 2023-2050

National Energy Transition Roadmap 2023-2050

10

Flagship Catalyst
Projects and Initiatives

Investments of more than RM25 billion, potential creation of 23,000 jobs, and reduce at least 10,000 GgCO2 eq. annually.

50

Key Initiatives
and Enablers

Spurring Malaysia’s green growth for climate resilience. To uplift GDP value from RM25 billion in 2023 to RM220 billion and generate 310,000 jobs by 2050.

0

Net-Zero GHG Emissions
as Early as 2050

NETR’s Responsible Transition 2050 outlines the energy sector’s low carbon pathway to reduce 32% GHG emissions from 259 MtCO2eq. (2019) to 175 MtCO2eq (2050).

Energy Transition Levers

6 Energy Transition Levers

Responsible Transition (RT) Pathway 2050 Target

Energy Efficiency

Industry and Commercial
EE savings

23%

Residential EE savingsl

20%

Renewable Energy

Coal share of installed capacity

0%

RE share of installed capacity

70%

Hydrogen

Green H2 production

Up to 2.5 MTPA

Grey H2 feedstock phase off

100%

H2 hubs

3 hubs

Bioenergy

Biofuel capacity

3.5 billion litres

Bioenergy power generation

1.4 GW

Green Mobility (Light Vehicle)

Urban public transport modal share

60%

xEV (2W) share of fleet

80%

xEV (4W) share of fleet

80%

Light vehicle fuel economy

~30%

Green Mobility (Heavy Vehicle)

Heavy transport fuel economy

~24%

Biofuel blending for heavy transport

B30

Biofuel blending for heavy transport

B30

Green Mobility (Aviation)

SAF blending mandate

47%

Green Mobility (Marine)

Green fuel penetration in marine transport

40%

CCUS

CCUS clusters

3 to 6 clusters

CO2 storage capacity

40-80 MTPA

The 2023 National Energy Transition Roadmap charts Malaysia’s sustainable energy future, aiming to reduce fossil fuel dependency, boost renewables, and improve efficiency.

Developed collaboratively by government agencies, energy stakeholders, and environmental experts, it positions Malaysia as a global leader and innovator in clean energy by 2050.

2023-2025
Foundation and Assessment

2026-2030
Strategy Development and Policy Formulation

2031-2040
Accelerated Transition and Technological Innovation

2041-2050
Sustainability and Global Leadership
The Malaysian government launches the roadmap in response to global climate change challenges.
Conduct studies to assess Malaysia’s energy landscape including sources, consumption, infrastructure and environmental impact.

The National Energy Policy, 2022-2040 (DTN)

 -> Strategically charts the way forward and outlines key priorities for the energy sector in the coming years.

 -> The DTN will position the energy sector as a catalyst for socioeconomic development.

 -> The DTN’s progressive Low Carbon Nation Aspiration will also ensure that the energy sector takes full advantage of opportunities arising from the energy transition, as well as ensure the sector is future-proof and strategically positioned to meet subsequent challenges.

New Energy

Malaysia is actively exploring Hydrogen, Ammonia, and Sustainable Aviation Fuel to diversify its energy mix and reduce carbon emissions.

These efforts aim to promote sustainable development and position Malaysia as a leader in clean energy technologies.

Accordion Example

Hydrogen is a clean and versatile energy carrier than can be used as a fuel for mobility and power, heating and feedstock for industry.

-> Ministry of Energy Transition and Water Transformation (PETRA)

-> Ministry of Science, Technology and Innovation

-> Malaysian Investment Development Authority (MIDA)

-> PETRONAS

-> Research Institutions and Universities

-> Private sector companies, international partnerships, industry associations and non-profit organizations.

1. Clean Energy Production

Malaysia can utilize hydrogen as a clean energy carrier to store and distribute renewable energy, reducing reliance on fossil fuels and lowering carbon emissions.

2. Transportation

Malaysia could adopt hydrogen Fuel Cell Vehicles (FCVs) that offer zero-emission transportation solutions to reduce air pollution and greenhouse gas emissions.

3. Energy Storage

Malaysia could use hydrogen storage solutions to balance supply and demand in the energy grid for intermittent renewable energy source like solar.

What is Hydrogen?

Hydrogen is a clean and versatile energy carrier than can be used as a fuel for mobility and power, heating and feedstock for industry.

Stakeholders who involved in exploring the potential of hydrogen?

Ministry of Science, Technology and Innovation (MOSTI)

⁠⁠Ministry of Investment, Trade and Industry (MITI)

PETRONAS

Sarawak Energy Berhad (SEB)

Sarawak Economic Development Corporation

Tenaga Nasional Berhad

Standard and Industrial Research Institute of Malaysia (SIRIM)

Research institutions and universities

Private sector companies, international partnerships, industry associations and non-profit organizations

Favourable Outcomes for Malaysia

Clean Energy Production

Malaysia can utilize hydrogen as a clean energy carrier to store and distribute renewable energy, reducing reliance on fossil fuels and lowering carbon emissions.

Transportation

Malaysia could adopt hydrogen Fuel Cell Vehicles (FCVs) that offer zero-emission transportation solutions to reduce air pollution and greenhouse gas emissions.

Energy Storage

Malaysia could use hydrogen storage solutions to balance supply and demand in the energy grid for intermittent renewable energy source like solar.

Accordion Example

Ammonia is a compound composed of nitrogen and hydrogen, often used in cleaning products, fertilizers, and industrial processes.

-> Ministry Agriculture and Agro-Based Industry (MOA)

-> PETRONAS

-> Research Institutions and Universities

-> Private sector companies, international partnerships, industry associations and non-profit organizations.

1. Fertilizer Production

Malaysia agricultural sector includes the cultivation of palm oil, rubber, rice and other crops relies on ammonia-based fertilizers to optimize crop yields and enhance soil fertility.

2. Industrial Applications

Malaysia manufacturing sector include the production of chemicals, plastics, pharmaceuticals and textiles to support economic growth and industrial development.

3. Carbon Mitigation

Malaysia can reduce its carbon footprint and mitigate greenhouse gas emissions by producing green or blue ammonia using renewable energy or carbon capture and storage (CCS) technologies.

What is Ammonia?

Ammonia is a compound composed of nitrogen and hydrogen, often used in cleaning products, fertilizers, and industrial processes.

Stakeholders who involved in exploring the potential of ammonia?

Tenaga Nasional Berhad

PETRONAS

Marine Sector

Favourable Outcomes for Malaysia

Fertilizer Production

Malaysia agricultural sector includes the cultivation of palm oil, rubber, rice and other crops relies on ammonia-based fertilizers to optimize crop yields and enhance soil fertility.

Industrial Applications

Malaysia manufacturing sector include the production of chemicals, plastics, pharmaceuticals and textiles to support economic growth and industrial development.

Carbon Mitigation

Malaysia can reduce its carbon footprint and mitigate greenhouse gas emissions by producing green or blue ammonia using renewable energy or carbon capture and storage (CCS) technologies.

Accordion Example

SAF is a type of biofuel or synthetic fuel that is produced from renewable feedstocks such as biomass, waste oils, agricultural residues or other sustainable sources.

-> Ministry of Transport

-> Ministry of Energy Transition and Water Transformation (PETRA)

-> Malaysian Aviation Commission (MAVCOM)

-> PETRONAS

-> Malaysian airlines include Malaysia Airlines and AirAsia

-> Research institutions and universities, biofuel producers, international collaborations and technology providers.

1. Carbon Emissions Reduction

By replacing fossil-based jet fuel with SAF, Malaysia can lower greenhouse gas emissions from the aviation sector.

2. Air Quality Improvement

SAF produces fewer pollutants during combustion by reduced emissions of nitrogen oxides (NOx), sulphur oxides (SOx), particulate matter and other pollutants, leading to improved air quality around airports and surrounding communities.

3. International Leadership

Malaysia’s commitment to sustainable aviation practices enhances its international reputation, strengthens diplomatic ties and promotes collaboration with other countries, airlines and stakeholders.

What is SAF?

SAF is a type of biofuel or synthetic fuel that is produced from renewable feedstocks such as biomass, waste oils, agricultural residues or other sustainable sources.

Stakeholders who involved in exploring the potential of SAF?

PETRONAS

PETRONAS

Aviation Sector

Favourable Outcomes for Malaysia

Carbon Emissions Reduction

By replacing fossil-based jet fuel with SAF, Malaysia can lower greenhouse gas emissions from the aviation sector.

Air Quality Improvement

SAF produces fewer pollutants during combustion by reduced emissions of nitrogen oxides (NOx), sulphur oxides (SOx), particulate matter and other pollutants, leading to improved air quality around airports and surrounding communities.

International Leadership

Malaysia’s commitment to sustainable aviation practices enhances its international reputation, strengthens diplomatic ties and promotes collaboration with other countries, airlines and stakeholders.

Technology & Information

In Malaysia, advanced technologies like CCUS, EVs, and energy storage underscore a commitment to a resilient, low-carbon future economy.

These innovations ensure sustainability and meet present and future generations' needs while reducing environmental impact.

Accordion Example

Hydrogen is a clean and versatile energy carrier than can be used as a fuel for mobility and power, heating and feedstock for industry.

-> Ministry of Energy Transition and Water Transformation (PETRA)

-> Ministry of Science, Technology and Innovation

-> Malaysian Investment Development Authority (MIDA)

-> PETRONAS

-> Research Institutions and Universities

-> Private sector companies, international partnerships, industry associations and non-profit organizations.

1. Clean Energy Production

Malaysia can utilize hydrogen as a clean energy carrier to store and distribute renewable energy, reducing reliance on fossil fuels and lowering carbon emissions.

2. Transportation

Malaysia could adopt hydrogen Fuel Cell Vehicles (FCVs) that offer zero-emission transportation solutions to reduce air pollution and greenhouse gas emissions.

3. Energy Storage

Malaysia could use hydrogen storage solutions to balance supply and demand in the energy grid for intermittent renewable energy source like solar.

What is CCUS

SAF is a type of biofuel or synthetic fuel that is produced from renewable feedstocks such as biomass, waste oils, agricultural residues or other sustainable sources.

Stakeholders who involved in exploring the potential of CCUS?

Ministry of Science, Technology and
Innovation (MOSTI)

⁠⁠Ministry of Economy

Ministry of Finance

⁠⁠Ministry of Investment,
Trade and Industry (MITI)

PETRONAS

Tenaga Nasional Berhad

Favourable Outcomes for Malaysia

Carbon Emissions Reduction

CCUS can help Malaysia reduce its carbon footprint by capturing CO2 emissions from industries and power generation, preventing from entering the atmosphere and contributing climate change.

Energy Security

CCUS can enhance Malaysia’s energy security by enabling the continued use of fossil fuels such as natural gas to helps diversify the energy mix and reduces dependence on imported fossil fuels.

Economic Growth

Investing in CCUS technologies can stimulate economic growth through job creation, investment attraction, and promote innovation in clean energy and environmental technologies.

Accordion Example

Ammonia is a compound composed of nitrogen and hydrogen, often used in cleaning products, fertilizers, and industrial processes.

-> Ministry Agriculture and Agro-Based Industry (MOA)

-> PETRONAS

-> Research Institutions and Universities

-> Private sector companies, international partnerships, industry associations and non-profit organizations.

1. Fertilizer Production

Malaysia agricultural sector includes the cultivation of palm oil, rubber, rice and other crops relies on ammonia-based fertilizers to optimize crop yields and enhance soil fertility.

2. Industrial Applications

Malaysia manufacturing sector include the production of chemicals, plastics, pharmaceuticals and textiles to support economic growth and industrial development.

3. Carbon Mitigation

Malaysia can reduce its carbon footprint and mitigate greenhouse gas emissions by producing green or blue ammonia using renewable energy or carbon capture and storage (CCS) technologies.

What is EV?

EV is a vehicle that is powered by one or more electric motors using energy stored in rechargeable batteries or other energy storage device.

Stakeholders who involved in exploring the potential of EV?

⁠⁠Ministry of Transport

⁠⁠Ministry of Investment, Trade and Industry (MITI)

Malaysian Green Technology and Climate Change Corporation (MGTC)

Research institutions and universities

Favourable Outcomes for Malaysia

Reduced Carbon Emissions

Malaysia can mitigate air pollution and contribute to global efforts to combat climate change.

Cost Savings

Malaysia could adopt hydrogen Fuel Cell Vehicles (FCVs) that offer zero-emission transportation solutions to reduce air pollution and greenhouse gas emissions.

Technological Innovation

Malaysia can capitalize on technological advancements to develop a competitive EV industry, attract investment and export EV related products and services to regional and global markets.

Accordion Example

SAF is a type of biofuel or synthetic fuel that is produced from renewable feedstocks such as biomass, waste oils, agricultural residues or other sustainable sources.

-> Ministry of Transport

-> Ministry of Energy Transition and Water Transformation (PETRA)

-> Malaysian Aviation Commission (MAVCOM)

-> PETRONAS

-> Malaysian airlines include Malaysia Airlines and AirAsia

-> Research institutions and universities, biofuel producers, international collaborations and technology providers.

1. Carbon Emissions Reduction

By replacing fossil-based jet fuel with SAF, Malaysia can lower greenhouse gas emissions from the aviation sector.

2. Air Quality Improvement

SAF produces fewer pollutants during combustion by reduced emissions of nitrogen oxides (NOx), sulphur oxides (SOx), particulate matter and other pollutants, leading to improved air quality around airports and surrounding communities.

3. International Leadership

Malaysia’s commitment to sustainable aviation practices enhances its international reputation, strengthens diplomatic ties and promotes collaboration with other countries, airlines and stakeholders.

What is Energy Storage?

Energy storage involves storing energy generated for lates use, allowing for the balancing of energy supply and demand, enhancing grid stability, and aiding the integration of renewable energy sources into the power grid.

Stakeholders who involved in exploring the potential of Energy Storage?

Ministry of Energy Transition and Water Transformation (PETRA)

Energy Commission (ST)

Tenaga Nasional Berhad

Favourable Outcomes for Malaysia

Grid Stability

Energy storage helps stabilize the electricity grid by balancing supply and demand fluctuations, reducing the risk of blackouts and enhancing overall grid reliability.

Reduced Transmission and Distribution Costs

Energy storage can help utilities optimize the grid operations and defer capital investments, resulting in cost savings for utilities and consumers.

Support for Electrification Initiatives

Energy storage supports Malaysia’s efforts to promote electrification for transportation by providing reliable electricity supply for electric vehicles, electric buses and electrified industrial processes.