August 21, 2025 [Rigzone]- Malaysia has launched a Hybrid Hydro Floating Solar (HHFS) and Green Hydrogen Hub in Terengganu. The hub is a collaboration between Petroliam Nasional Berhad (Petronas) and Tenaga Nasional Bhd. (TNB), with both parties agreeing to advance the production of hydrogen and its derivatives.

TNB would also enhance grid infrastructure to support Malaysia’s energy transition and regional clean energy ambitions, Petronas said in a media release.

The HHFS is a partnership between TNB’s power generation subsidiary, TNB Genco Sdn. Bhd., and state investment arm Terengganu Inc.

The collaborations were formalized through document exchanges during the launch. The launch was officiated by Prime Minister Anwar Ibrahim at the Sultan Mahmud Hydro Electric Power Station in Kenyir.

“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 CEO, said.

“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 said.

The Green Hydrogen Hub in Terengganu is part of a comprehensive, end-to-end value chain that includes continuous renewable energy (RE) generation from sources like the Kenyir HHFS facility, as well as green hydrogen production and derivatives such as green methanol and green ammonia, Petronas said.

This will be the first project of its kind and scale planned within the Kenyir-Kertih Corridor to leverage TNB’s renewable energy generation and ongoing grid infrastructure upgrades in Kenyir, alongside Petronas’ existing facilities, the Malaysian energy major said. These include a planned hydrogen electrolyzer, a derivatives plant, and carbon capture, utilization, and storage (CCUS) facilities in Kertih.

The initiative supports the ASEAN Power Grid and advances research and development, helping Malaysia become a regional green energy hub and facilitating cross-border energy trade and renewable energy integration, according to Petronas.