Malaysia Launches Hybrid Solar-Hydro Green Hydrogen Hub

Jul 15, 2025 02:19 PM ET
  • TNB and Petronas join forces to create Malaysia's green hydrogen hub, leveraging hydroelectric and solar power to lead the energy transition.

Malaysian utility Tenaga Nasional Berhad (TNB) is collaborating with Petroliam Nasional Bhd (Petronas) to develop a green hydrogen hub in Terengganu, utilizing hydroelectric power and floating solar arrays. This initiative aims to position Malaysia as a leader in the green hydrogen value chain and aligns with the National Energy Transition Roadmap (NETR). TNB's subsidiary, TNB Genco Sdn Bhd, will work with Terengganu Inc to implement the floating photovoltaic (PV) plan.

The project will integrate floating PV panels with existing hydropower resources at the Kenyir Dam. The hydrogen produced will be used for derivatives like green methanol and green ammonia. Petronas' CEO highlighted the collaboration's potential to enhance Malaysia's energy security and diversify its energy sources, complementing the national grid's conventional energy sources.

How will TNB and Petronas' collaboration impact Malaysia's green hydrogen industry?

  • Strengthening Malaysia's Position: The collaboration between TNB and Petronas will enhance Malaysia's position as a key player in the global green hydrogen market, potentially attracting international investments and partnerships.
  • Economic Growth: The development of a green hydrogen hub could stimulate local economies by creating jobs in construction, operation, and maintenance of renewable energy facilities.
  • Technological Advancements: The project may drive innovation and technological advancements in renewable energy and hydrogen production, positioning Malaysia as a leader in green technology.
  • Energy Security: By diversifying energy sources, the collaboration will contribute to Malaysia's energy security, reducing reliance on fossil fuels and enhancing resilience against energy market fluctuations.
  • Environmental Benefits: The initiative will help reduce carbon emissions and promote sustainable energy practices, aligning with global climate goals and Malaysia's commitment to reducing its carbon footprint.
  • Export Opportunities: The production of green hydrogen and its derivatives like green methanol and green ammonia could open new export markets for Malaysia, boosting the country's trade balance.
  • Policy and Regulatory Support: The collaboration may encourage the Malaysian government to develop supportive policies and regulatory frameworks to facilitate the growth of the green hydrogen industry.
  • Infrastructure Development: The project will likely lead to the development of necessary infrastructure for hydrogen production, storage, and distribution, laying the groundwork for future renewable energy projects.