KUALA LUMPUR: Integrated engineering solutions provider, Kelington Group Bhd signed a memorandum of understanding (MoU) to jointly develop a 2 megawatt (MW) green hydrogen production hub at the Batang Kali small hydropower plant (SHP).

The MoU was signed by Kelington’s wholly owned subsidiary, Ace Gases Sdn Bhd, Worldwide Energy Development Sdn Bhd and SKS Coachbuilders Sdn Bhd (SKS).

Under this collaboration, Kelington, via Ace Gases, will spearhead the development of the green hydrogen electrolyser plant and manage hydrogen production at the Batang Kali SHP.

Ace Gases will also drive market development and pursue business opportunities arising from the adoption of green hydrogen.

In parallel, Worldwide Energy will provide land, renewable power, water and regulatory support.

At the same time, SKS will lead downstream integration by rolling out fuel cell electric vehicle (FCEV) buses, establishing refuelling stations, and promoting local industry participation and job creation.

This MoU will remain in effect for two years, with the option to extend upon mutual agreement.

Kelington CEO Ir Raymond Gan said this initiative supports Selangor’s hydrogen ecosystem by covering the whole value chain from upstream production to midstream refuelling and downstream mobility.

“By leveraging renewable hydropower and proven electrolyser technology, we aim to demonstrate a reliable and sustainable pathway for green hydrogen that can be deployed in transport and industrial applications.

“Kelington, through Ace Gases, brings practical industrial gas expertise to this collaboration. We have extensive expertise in producing, supplying, and distributing industrial and specialty gases for sectors such as healthcare, energy, semiconductors, and manufacturing.

“In hydrogen specifically, we have developed strong capabilities in production, operation and maintenance of hydrogen supply systems, establishment of proven standards, safe handling practices, and integration of electrolyser systems,“ he said in a statement.

Worldwide Energy, a subsidiary of Worldwide Holdings Bhd, is a Selangor state‐linked conglomerate with core businesses spanning energy, environment management, property and medical devices.

It is actively involved in green technology initiatives across Selangor and is currently leading the Selangor Hydrogen Oriented Resources Programme (Shore) to advance the state’s sustainability agenda.

Worldwide Energy also developed the 5.1 MW Batang Kali SHP, which commenced operations in December 2024.

SKS is a Malaysian bus and coach manufacturer with a presence in domestic and regional markets.

The company is developing fuel cell electric vehicle (FCEV) buses powered by hydrogen fuel cells and batteries, including the rollout of hydrogen refuelling infrastructure.

The project is categorised as green hydrogen, as the hydrogen will be produced through electrolysis powered entirely by renewable energy from the Batang Kali SHP.

Globally, momentum around hydrogen continues to accelerate. As of 2024, more than 1,000 hydrogen refuelling stations were in operation and installed electrolyser capacity had reached around 2 gigawatts (GW).

China leads global deployment, accounting for about 65% of global capacity, including plants already in operation and projects approved for construction.

India is targeting 10% of global demand by 2030, while Germany and Spain have set domestic targets of 10 GW and 11 GW, respectively.

Australia is also advancing multiple gigawatt-scale projects leveraging its vast renewable resources. Collectively, these developments highlight the accelerating global commitment to hydrogen as a central pillar of the energy transition.

Gan said that across the world, industries are looking for cleaner, more reliable energy options, and hydrogen is fast becoming part of that conversation.

“This MoU enables us to study what is practical for Malaysia, and if the results are positive, we look forward to sharing the next steps with our partners and stakeholders.

“Ultimately, our goal is to contribute to a cleaner energy future while building long-term capabilities that support Malaysia’s decarbonisation pathway,“ he said.

The MoU reflects the group’s commitment to align with Malaysia’s decarbonisation objectives, as outlined in the National Energy Transition Roadmap and the Hydrogen Economy and Technology Roadmap introduced in 2023, while supporting Selangor’s sustainability drive through the Shore initiative.

 Business