Malaysia has reached a major milestone in its energy transition roadmap with the launch of the hybrid hydro floating solar (HHFS) and green hydrogen hub in Terengganu on last Saturday.
In a statement on last Saturday, Malaysia’s utilities firm Tenaga Nasional Berhad (TNB), state-owned oil and gas firm Petroliam Nasional Berhad (Petronas) and investment firm Terengganu Inc said these initiatives aim to position Malaysia as a regional leader in the green hydrogen value chain while supporting the National Energy Transition Roadmap (NETR) and the Hydrogen Economy and Technology Roadmap (HETR).
The green hydrogen hub is a strategic collaboration between Petronas and TNB, with both parties advancing hydrogen production and its derivatives, while TNB also enhances grid infrastructure to support Malaysia’s energy transition and regional clean energy ambitions.
The HHFS is a partnership between TNB’s power generation subsidiary, TNB Genco Sdn Bhd, and Terengganu Inc, in line with the state investment arm’s aspiration to spur socio-economic growth in Terengganu.
The collaborations were formalized through document exchanges during the launch.
The green hydrogen hub in Terengganu is part of an integrated end-to-end value chain that encompasses round-the-clock renewable energy generation from resources such as the Kenyir HHFS facility, green hydrogen production, and derivatives including green methanol and green ammonia.
This will be the first of its kind and scale, set to be developed within the Kenyir-Kertih Corridor to take advantage of TNB’s renewable generation and grid infrastructure upgrade that are progressing in Kenyir, as well as Petronas’ existing facilities and infrastructure, including the anticipated hydrogen electrolyzer, its derivatives plant and carbon capture, utilization, and
storage (CCUS) facilities within the Kertih area.
The initiative strengthens TNB’s and Petronas’ roles as key government-linked companies in driving Malaysia’s energy transition by collaborating with ASEAN and global partners.
It supports the ASEAN Power Grid, advances sustainable solutions, fosters knowledge transfer, and promotes research and development (R&D).
These efforts position Malaysia as a regional green energy hub while enabling cross-border energy trade and renewable energy integration.
“These projects show that Terengganu has the potential to lead in green energy and create new economic opportunities for the people,
“With support from TNB and Petronas, we believe Terengganu can become a top choice for green energy investment in the region,” Burhanuddin Hilmi Mohamed @ Harun, Terengganu Inc President and Group Chief Executive Officer.
“As the state’s investment arm, Terengganu Inc will ensure these projects meet their goals and also help build local talent and transfer technology，
“This is a great chance to place Terengganu on the global stage as a green energy hub，” He added.
Meanwhile, TNB President/Chief Executive Officer Megat Jalaluddin Megat Hassan emphasized the importance of the strategic alliance in accelerating TNB’s decarbonization journey through proven technologies.
“Our partnership in the Terengganu Green Hydrogen Hub is a cornerstone of our commitment to driving clean energy innovation,
“This project is crucial to Malaysia’s green hydrogen ambitions and reflects our dedication to advancing the NETR and HETR goals,” he added.
According to him, the Kenyir HHFS project, part of the firm’s broader 2.5 GW hybrid solar-hydro initiative, exemplifies how TNB is leveraging its existing assets to maximize renewable output.
“The hydro plant serves as a flexible energy storage system-conserving water during peak hours and discharging it during off-peak—to stabilize the grid and respond rapidly to fluctuations in demand,” he said.
Petronas President and Group Chief Executive Officer Tengku Muhammad Taufik highlighted the transformative impact of the initiative.
According to him, this strategic alliance converges the power and utilities capabilities of TNB with the oil, gas and energy expertise that Petronas has refined over 50 years to establish a robust and dynamic energy ecosystem in Malaysia.
“By tapping into the promising potential for green hydrogen and renewables to complement the baseload in the national grid that is still predominantly being served by conventional sources of energy, this landmark collaboration will pave the way for greater energy security and diversity for Malaysia,
“As partners, we are committed to provide the energy required to power national and regional growth by building a strong foundation to support the NETR,” he added.
Analysts foresee strong momentum ahead for Malaysia’s renewable energy sector