Malaysia Launches Hybrid Hydro Floating Solar and Green Hydrogen Hub in Terengganu

Malaysia has marked a significant milestone in its energy transition with the launch of the Hybrid Hydro Floating Solar (HHFS) project and the Green Hydrogen Hub in Terengganu. The dual initiatives are designed to support the National Energy Transition Roadmap (NETR) and the Hydrogen Economy and Technology Roadmap (HETR), while positioning Malaysia as a regional leader in the green hydrogen value chain.

The Green Hydrogen Hub is a strategic collaboration between Petroliam Nasional Berhad (PETRONAS) and Tenaga Nasional Berhad (TNB). PETRONAS will spearhead hydrogen production and derivatives, while TNB strengthens grid infrastructure to enable Malaysia’s clean energy ambitions across national and regional markets.

Meanwhile, the HHFS project is being developed by TNB Genco Sdn Bhd, TNB’s power generation subsidiary, in partnership with Terengganu Inc, the state’s investment arm. The collaboration aligns with Terengganu’s goal of accelerating socio-economic development through sustainable energy investments.

The launch ceremony at the Sultan Mahmud Hydro Electric Power Station, Kenyir, was officiated by Prime Minister Dato’ Seri Anwar Ibrahim. The event was also attended by Terengganu Menteri Besar Dato’ Seri Ir Dr Ahmad Samsuri Mokhtar, PETRA Deputy Minister Akmal Nasrullah Mohd Nasir, and senior leadership from TNB, PETRONAS, and Terengganu Inc.

Speaking at the event, Dato’ Burhanuddin Hilmi Mohamed Harun, President and Group CEO of Terengganu Inc, stressed the state’s commitment to the green economy. “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,” he said.

Datuk Ir. Megat Jalaluddin Megat Hassan, TNB President/CEO, highlighted that the partnership represents a cornerstone in the company’s decarbonisation strategy. He noted that the Kenyir HHFS, part of TNB’s broader 2.5 GW hybrid solar-hydro initiative, will enhance grid stability by leveraging hydro storage to complement solar generation.

Tan Sri Tengku Muhammad Taufik, PETRONAS President and Group CEO, said the collaboration underscores Malaysia’s ability to integrate traditional energy expertise with new technologies. “By tapping into the promising potential for green hydrogen and renewables to complement the baseload in the national grid, this landmark collaboration will pave the way for greater energy security and diversity for Malaysia,” he added.

The Green Hydrogen Hub will be the first of its scale in the country, developed within the Kenyir-Kertih Corridor. It will integrate renewable generation from the HHFS facility with green hydrogen production and downstream derivatives such as green methanol and green ammonia. The initiative will also leverage PETRONAS’ planned electrolyser, derivatives plant, and carbon capture, utilisation, and storage (CCUS) facilities in Kertih.

By combining resources, infrastructure, and expertise, the projects strengthen Malaysia’s ambition to become a regional green energy hub. They also align with ASEAN’s cross-border Power Grid initiative, while advancing sustainable energy solutions, research and development, and knowledge transfer opportunities.