Terengganu Set to Become Malaysia’s Renewable Energy Hub with 1,000 MW Solar-Hydrogen Project

Terengganu is set to emerge as Malaysia’s leading state in renewable energy development, driven by a portfolio of high-impact clean energy initiatives, according to PETRONAS Senior Vice President of Malaysia Petroleum Management, Datuk Ir. Bacho Pilong.

Speaking at the East Coast Energy (ECE) 2025 Seminar in Kuala Terengganu, Ir. Bacho highlighted the state’s transition from its traditional oil and gas legacy toward becoming a national hub for sustainable energy.

A flagship project spearheading this transformation is the Kenyir Hybrid Floating Solar Farm, which will generate up to 1,000 megawatts (MW) of solar power. Half of this capacity is designated for Terengganu’s first green hydrogen hub, a collaborative effort between Terengganu Inc., PETRONAS, and Tenaga Nasional Berhad (TNB).

“This initiative not only builds on Terengganu’s established oil and gas foundations but also positions the state at the forefront of Malaysia’s clean energy transition,” said Ir. Bacho. He described the project as a cornerstone of a broader push toward clean and sustainable energy development.

Beyond large-scale infrastructure, PETRONAS is advancing local capacity-building and environmental stewardship in the state. Key initiatives include:

• PETRONAS Energy Transition Academy at the INSTEP campus, designed to train the future workforce for low-carbon industries
• The Vendor Development and Financing Programme, which has distributed over RM342 million to 54 Terengganu-based companies since 2018, and actively supports 10 local vendors under its Bumiputera development scheme
• Marine conservation programmes such as Rigs-to-Reef and Tubular-to-Reef, which have led to a 30% increase in fish biodiversity, a 10% annual rise in nutrient levels, and the identification of 42 marine species around artificial reef installations near Pulau Kapas

Ir. Bacho stressed that the growth of the energy sector must deliver lasting social and environmental benefits, not just industrial gains. “With strategic projects and collaborative support, Terengganu is strengthening its energy leadership and stands ready to become Malaysia’s new renewable energy hub,” he said.

He concluded that Terengganu’s comprehensive approach sets a strong example for the East Coast region and the country as it transitions toward a more resilient and sustainable energy future.