Kota Kinabalu: Among all of Sabah's renewable energy ventures, none has generated as much excitement as the development of Ocean Thermal Energy Conversion (Otec) technology in Sabah.
The technology uses the temperature difference between deep and surface seawater to generate electricity - a stable, predictable and potentially massive source of clean power.
AdvertisementIn April 2024, the Sabah Legislative Assembly passed the Ocean Thermal Energy Conversion Enactment, providing a legal framework for development. The plan is bold: Otec power plants along 500km of coastline, generating 20,000 megawatts - 15,000MW from the West Coast and 5,000MW from the East Coast.
"This is not only a gamechanger for the country, it's a gamechanger for the region. Otec can deliver energy on a scale that is unprecedented globally," said Hajiji.
The Sabah Energy Council, chaired by Hajiji, has already approved feasibility studies by three local companies, with a one-year deadline for completion. Interest is also coming from abroad, with companies in Australia and the United Kingdom (UK) exploring partnerships.
A pilot Otec plant, developed by Universiti Teknologi Malaysia (UTM) and Universiti Malaysia Sabah (UMS) with funding from Shell's Marine Renewable Programme, is due for completion by the end of this year.
Advertisement Otec sits within a wider Blue Economy framework - a sector the Sabah Government considers a new pillar of economic growth. Comprising 14 components from marine harvesting to blue carbon and maritime transport, the Blue Economy offers diverse revenue streams.
The Blue Economy Industrial Park in Kudat is projected to yield 491,000 metric tonnes of marine harvests annually, worth RM3.25 billion. At the same time, industrial parks in Kota Belud and Beaufort are being developed to attract investors, while offshore fish cage proposals worth US$30 million are under feasibility study.
Advertisement Sabah is also investing in EU-standard deep-sea fishing ports, desalination projects at Lahad Datu's POIC industrial park and large-scale mangrove conservation under the Sabah Mangrove Action Plan 2024-2033.
If Otec and the Blue Economy are the engines, then Sabah's new environmental legislation is the enabling framework. The Climate Change and Carbon Governance Enactment 2025 legally affirms carbon rights as belonging to the Sabah Government and sets out clear benefit-sharing provisions, especially for indigenous communities.
"This is more than an environmental milestone. It is a strategic economic asset. In a carbon-constrained world, it is a competitive advantage we cannot afford to lose," Hajiji told the Asean Sustainable Forestry Summit 2025 in Kota Kinabalu, Sabah.
The Enactment also establishes a Climate Action Council, a Climate Fund and a State-level emissions inventory. Sabah's status as a net carbon sink - absorbing more carbon than it emits - strengthens its credentials as a green investment destination.