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H2 Energy is demonstrating that solar-hydrogen systems can replace diesel in remote regions, delivering 24/7 clean power and cutting emissions while strengthening community healthcare.
Steve Phuah
Special Projects Lead @ H2 Energy Sdn Bhd
In Sarawak's rural communities, access to healthcare is closely tied to electricity availability. Without reliable power, clinics like Long Loyang, serving a catchment of 2,000 people, face severe limitations: restricted operating hours, vaccine unavailability, and delayed emergency responses. Staff often make difficult decisions, leaving patients needing urgent night-time treatment to wait until morning due to idle essential equipment. This energy gap represents not only a technical challenge but a profound inequity, leaving rural Malaysians underserved.
Founded in 2017, H2 Energy developed the H2E System, a modular hybrid integrating solar panels, an electrolyser-fuel cell, hydrogen storage, and a smart energy management unit to address rural energy gaps. In August 2022, Long Loyang Clinic became its first deployment site in Malaysia.
By day, solar panels generate electricity, with excess power used for water electrolysis to produce hydrogen. At night, stored hydrogen powers the system, delivering seamless, silent, and emission-free electricity for 24/7 clinic operations. Compact and mobile, the system requires minimal maintenance compared to diesel generators and produces up to 12 litres of clean water daily—a critical by-product for clinics where water access is unreliable and uncertain as power. The H2E System ensures uninterrupted, reliable, clinic-grade power for optimal delivery of healthcare services.
Environmentally, the system displaces diesel generators, avoiding approximately 2 tonnes of CO2 emissions annually—equivalent to planting over 100 trees yearly—while reducing noise, air pollution, and risks from fuel transport and spillage.
The H2E System at Long Loyang Clinic has transformed healthcare delivery. Reliable refrigeration now ensures medicines and vaccines remain viable, emergency procedures proceed safely after dark, and childbirths are supported at any hour. Healthcare workers operate with confidence, knowing electricity is dependable.
Socio-economically, the project has created 20 local jobs in installation, training, and maintenance, fostering community skills. Commercial viability is proven through a recent system sale for deployment in Brunei, with ongoing negotiations for long-term power purchase agreements with Sarawak’s Ministry of Health, securing stable revenue while enabling life-saving healthcare access.
H2 Energy views Long Loyang as a starting point. By 2028, the company aims to deploy H2E Systems to five additional clinics and three off-grid villages in Sarawak, impacting over 6,000 people. By 2035, it plans to electrify up to 5,000 communities, enable hydrogen-powered public transport in Kuching, and export its technology to Australia and the Middle East. Financially, the model is designed for resilience, with revenue from equipment sales, leasing, service contracts, and potential carbon credits. The H2E System exemplifies steward leadership, demonstrating that purpose-driven innovation is the surest path to both profit and societal progress.
H2 Energy is an ASEAN renewable energy company pioneering solar–hydrogen solutions for off-grid reliability. Our modular H2E System delivers 24/7 clean power for rural electrification and has scalable potential to serve diverse off-grid users worldwide.
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The SL25 partners - Stewardship Asia Centre, the INSEAD Hoffmann Institute, WTW and The Straits Times - are not responsible for the statements and opinions expressed by the organisations behind the SL25 projects. These organisations are responsible for the truthfulness, accuracy and completeness of their content in their applications as well as those presented on this site, which are not guaranteed by the SL25 partners. All information on this site reflects the submissions received as of 15 Apr 2025, the closing application date for SL25. Inclusion to the SL25 list is based on the particular project(s) described in the application form. SL25 is not intended as a blanket endorsement of the organisation as a whole.
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