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

Malaysia has launched a significant clean energy initiative aimed at establishing a green hydrogen hub in Terengganu, combining hydropower and floating solar technologies. The project, part of the country’s National Energy Transition Roadmap (NETR), brings together state utility Tenaga Nasional Berhad (TNB), national oil company Petroliam Nasional Berhad (Petronas), and Terengganu Inc, the state investment arm.

Centered on the Kenyir Dam in eastern Malaysia, the initiative involves two integrated components. Petronas and TNB will jointly develop a green hydrogen production facility, while TNB’s generation subsidiary, TNB Genco Sdn Bhd, will collaborate with Terengganu Inc to deploy floating solar panels, forming a hybrid solar-hydro power system.

The hydrogen produced will be converted into green derivatives such as green methanol and green ammonia, with the aim of positioning Malaysia as a key player in the regional hydrogen economy.

“This landmark collaboration will pave the way for greater energy security and diversity for Malaysia,” said Tan Sri Tengku Muhammad Taufik, President and CEO of Petronas. “It taps into the promising potential of green hydrogen and renewables to complement the national grid’s baseload, which is still largely dependent on conventional energy sources.”

The project underscores Malaysia’s growing commitment to renewable energy innovation, with a focus on scalable, integrated solutions that support decarbonization targets while strengthening domestic energy resilience.