KUALA LUMPUR, July 2025 — In a strategic push toward a cleaner energy future, Malaysia’s largest utility, Tenaga Nasional Berhad (TNB), has teamed up with Petroliam Nasional Berhad (Petronas) and Terengganu Inc to launch a groundbreaking hybrid solar-hydro hydrogen hub project in Terengganu. The initiative forms a critical part of Malaysia’s National Energy Transition Roadmap (NETR) and underscores the nation’s growing focus on renewable energy and green hydrogen technologies.
Transforming Kenyir Dam into a Clean Energy Powerhouse
At the heart of this transformative initiative is the Kenyir Dam, located in eastern Malaysia. Under the plan, TNB’s generation subsidiary, TNB Genco Sdn Bhd, will collaborate with Terengganu Inc to deploy floating solar photovoltaic (PV) panels across the dam’s surface. This innovative model will combine hydroelectric power and solar energy to provide a robust and sustainable power supply for hydrogen production.
Simultaneously, TNB will partner with Petronas to establish a green hydrogen production facility, leveraging the dam’s renewable energy output. The hydrogen generated from the project will be further processed into high-demand derivatives such as green methanol and green ammonia—key fuels in the future global hydrogen economy.
A Strategic Leap Toward Energy Diversification
The project is seen as a strategic milestone in Malaysia’s ongoing efforts to decarbonize its energy sector and develop new export-oriented industries. By integrating solar and hydroelectric power into hydrogen production, the hybrid model offers a low-emission, high-efficiency blueprint for future clean energy hubs.
“This landmark collaboration will pave the way for greater energy security and diversity for Malaysia,” said Tan Sri Tengku Muhammad Taufik, President and CEO of Petronas. “It taps into the promising potential of green hydrogen and renewables to complement the national grid’s baseload, which is still largely dependent on conventional energy sources.”
Supporting the National Energy Transition Roadmap (NETR)
The hybrid solar-hydro hydrogen project aligns closely with Malaysia’s NETR framework, which outlines a phased transition toward more sustainable and diversified energy sources. As the country seeks to meet its net-zero emissions target by 2050, initiatives like this are essential in demonstrating scalable, export-ready solutions that balance environmental goals with economic development.
TNB’s participation reinforces its long-term commitment to renewable energy innovation, while Petronas brings crucial expertise in hydrogen production and downstream applications. Together, the companies aim to position Malaysia as a regional leader in green hydrogen exports to neighboring ASEAN markets and beyond.
Unlocking Economic and Environmental Potential
The project is expected to unlock significant value not just in energy generation but also in job creation, investment attraction, and technological innovation. The inclusion of floating solar technology highlights Malaysia’s ability to adapt and optimize its abundant natural resources for future-facing industries.
Floating solar PV systems offer multiple benefits: they maximize land use efficiency, reduce water evaporation from reservoirs, and provide additional power without impacting existing infrastructure. Coupled with hydropower, the system ensures round-the-clock clean energy supply critical for the continuous operation of hydrogen electrolysis.
Malaysia’s Role in the Future Hydrogen Economy
As global demand for green hydrogen accelerates—driven by decarbonization goals in shipping, aviation, and heavy industry—Malaysia is positioning itself to become a sustainable fuel exporter in the region. By creating high-value hydrogen derivatives such as methanol and ammonia, the country is tapping into a rapidly growing market and preparing for a just and inclusive energy transition.
This ambitious project is not just a technical feat—it is a statement of intent. Malaysia is no longer content to follow; it is ready to lead in the renewable energy and green hydrogen revolution.
