LBS signs MoU for 10GW green hydrogen project in Sabah

 By Sharen Kaur - November 14, 2024 

Datuk Phoong Jin Zhe, Sabah's Minister of Industrial Development and Entrepreneurship (centre), attended the signing ceremony of the Memorandum of Understanding, joined by Tan Sri Ir. (Dr.) Lim Hock San, group executive chairman of LBS Bina Group Bhd (second from right); Datuk Wira Joey Lim Hock Guan, chief executive officer (CEO) of LBS (right); Dr. Firdausi Suffian, CEO of Sabah Invest Bhd (third from right); Tan Sri Anifah Aman, chairman of Sabah Invest; Datuk Hamild Awang, chairman of Sabah Forestry Development Authority (SAFODA), and Bahrul Razha Chupat, general manager of SAFODA.

KUALA LUMPUR: LBS Bina Group Bhd has entered into a Memorandum of Understanding (MoU) with Invest Sabah Bhd, the Sabah Forestry Development Authority (SAFODA), and Midwest Green Sdn Bhd to explore a 10 gigawatts (GW) green hydrogen production project in Kota Marudu, Sabah. 

The initiative aims to generate over 250,000 tonnes of green hydrogen annually, utilising a facility powered by solar and wind energy on a site spanning 15,000 to 30,000 acres. 

Tan Sri Ir. Dr. Lim Hock San, LBS group executive chairman, highlighted that this MoU demonstrates the group's dedication to sustainable development and supports 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," he said in a statement.

Lim said that the substantial economic benefits anticipated from this project are significant, including supporting job creation and stimulating other local industries. 

These positive impacts are likely to multiply over the coming years, he said.

"This MoU is thus viewed as the opening of opportunities for collaborations with various local and international partners in the near future, marking a groundbreaking step towards developing Sabah as a major player within the renewable energy sector."

Lim said that the MOU exemplifies LBS's expertise in developmental projects given its sterling track record over the years. 

According to him, the Kota Marudu land is uniquely positioned to support green energy generation, boasting some of the highest solar irradiance levels in Malaysia and consistent high wind speeds, ideal for renewable energy production. 

Additionally, the site's proximity to nearby seaports will facilitate efficient export logistics, enhancing its potential as a regional green energy hub.

A key aspect of the collaboration will be LBS's strategic focus in exploring a large plot of land in Kota Marudu to align with both national and state sustainability goals.

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. 

The parties will also work together to establish a consortium structure, ensuring alignment with local and international stakeholders interested in this forward-looking venture.

This development is also expected to pave the way for future green industrial parks, which will help transform Sabah into a leader in green energy and industrial innovation.