Malaysia Unveils Hybrid Hydro-Solar and Green Hydrogen Hub in Terengganu

Malaysia has marked a significant step in its energy transition efforts with the official launch of a hybrid hydro floating solar (HHFS) facility and a green hydrogen hub in Terengganu. The announcement was made last Saturday by Tenaga Nasional Berhad (TNB), Petroliam Nasional Berhad (Petronas), and Terengganu Inc, who are leading the project in support of Malaysia’s National Energy Transition Roadmap (NETR) and Hydrogen Economy and Technology Roadmap (HETR).

Advancing Green Hydrogen and Clean Energy Integration

The green hydrogen hub is a joint initiative between Petronas and TNB, designed to accelerate hydrogen production and its derivatives while also expanding Malaysia’s grid infrastructure. This development is aimed at enhancing Malaysia’s role as a regional leader in clean energy and supporting cross-border energy integration through the ASEAN Power Grid.

Meanwhile, the HHFS facility is being developed by TNB Genco Sdn Bhd in partnership with Terengganu Inc, reflecting the state’s ambition to stimulate socio-economic growth through clean energy initiatives. Both collaborations were formalized through official document exchanges during the launch.

First-of-Its-Kind Development in the Kenyir-Kertih Corridor

The integrated hydrogen value chain—spanning 24/7 renewable energy generation from the Kenyir HHFS site, green hydrogen production, and the downstream creation of green ammonia and methanol—will be the first project of its kind and scale in Malaysia.

It will be anchored within the Kenyir-Kertih Corridor, utilizing TNB’s upgraded renewable power infrastructure in Kenyir and Petronas’ existing facilities in Kertih. Planned installations include a hydrogen electrolyzer, derivatives processing plants, and carbon capture, utilization, and storage (CCUS) systems.

Strengthening Malaysia’s Position in the ASEAN Clean Energy Market

The hub will reinforce Malaysia’s status as a regional green energy hub, fostering R&D, knowledge transfer, and long-term collaboration with international partners. The project also plays a vital role in advancing the NETR and HETR by supporting Malaysia’s ambitions to become a clean energy leader.

Burhanuddin Hilmi Mohamed Harun, President and Group CEO of Terengganu Inc, emphasized the project’s socio-economic value:

“With support from TNB and Petronas, Terengganu has the potential to become a regional hub for green energy. These projects will unlock economic opportunities and support local talent development through technology transfer.”

Corporate Leaders Highlight Strategic Vision

TNB President and CEO Megat Jalaluddin Megat Hassan underscored the importance of this initiative in decarbonizing Malaysia’s energy mix:

“Our participation in the Green Hydrogen Hub reflects TNB’s commitment to innovation and low-carbon technologies. The Kenyir HHFS, part of our 2.5 GW hybrid solar-hydro plan, shows how we are optimizing existing assets to boost renewable energy output.”

He added that the Kenyir hydro plant acts as a flexible storage system, conserving water during peak solar hours and releasing it during high demand to stabilize the grid.

Petronas President and Group CEO Tengku Muhammad Taufik also praised the strategic alignment between Malaysia’s major energy players:

“This collaboration brings together TNB’s utilities capabilities with Petronas’ five decades of energy expertise. By leveraging the growing potential of green hydrogen and renewables, we’re laying the groundwork for greater energy security and diversity.”

He emphasized that the partnership is designed to support national and regional energy growth while providing the foundation to implement the NETR effectively.