Sabah, LBS Bina inks MOU to build RM2bil hydrogen production plant in Sipitang

LBS Bina Group Bhd and the Sabah government have signed a Memorandum of understanding (MOU) to develop a RM2 billion green hydrogen production plant in Sipitang, Sabah.

The hydrogen will be used to produce green ammonia for export and as a fuel for power generation and transportation.

The MOU was signed between LBS Bina executive chairman Tan Sri Lim Hock San and Sabah Chief Minister Datuk Seri Hajiji Noor at the sidelines of the Malaysia Renewable Energy Conference and Exhibition (MRECE) 2023 here today.

Lim said the project will be undertaken by a special purpose vehicle (SPV) to be incorporated, with LBS Bina holding a majority stake of 60 per cent, while the Sabah government will own the remaining 40 per cent.

He said the plant is expected to produce 60,000 tonnes of green hydrogen and 1.2 million tonnes of green ammonia per year.

"We are confident that this project will contribute to the development of the hydrogen economy in Sabah and Malaysia, and we are committed to working closely with the Sabah government to make this project a success," he said.

Hajiji said the project is in line with the Sabah government's aspiration to become a green energy hub in the region.

"This project will not only create jobs and boost the economy, but it will also help us to reduce our carbon emissions and contribute to the fight against climate change," he said.

The project is expected to be completed in 2027.