Green Hydrogen Hub Launch in Terengganu Accelerates Malaysia’s Sustainable Energy Ambitions

Picture a lush lake in the tropics that’s more than just a pretty vista—it’s a floating solar park teamed up with a hydroelectric powerhouse, and together they fuel a state-of-the-art hydrogen factory. On August 19, 2025, Malaysia pulled back the curtain on its Hybrid Hydro Floating Solar (HHFS) and Green Hydrogen Hub in the Kenyir-Kertih Corridor, Terengganu. With Prime Minister Anwar Ibrahim presiding, this collaboration between PETRONAS, Tenaga Nasional Berhad (TNB), TNB Genco and Terengganu Inc is a daring leap into large-scale sustainable energy and green hydrogen production.

A New Chapter on Lake Kenyir

These days, Lake Kenyir isn’t just water and rainforest. Hundreds of solar panels bob on the surface, soaking up sunlight in sync with the Sultan Mahmud Hydro Electric Power Station. This clever HHFS setup balances the ups and downs of sunshine by leaning on hydropower when clouds roll in—giving the grid steady juice while slashing carbon emissions.

Bridging to Green Hydrogen Production

And that clean electricity doesn’t just vanish into thin air. A chunk of it powers a field of electrolyzers that split water into oxygen and hydrogen. The resulting green hydrogen can be stored, piped around, or even turned into clean ammonia and methanol—ready for local industries or export across ASEAN. By blending solar and hydro, the plant cranks up its capacity factor and keeps those electrolyzers humming, rain or shine.

Malaysia’s National Energy Transition Roadmap lays it out plainly: the government has identified hydrogen production, carbon capture, utilization and storage (CCUS), and reforestation as the pillars of its climate strategy. It’s clear—hydrogen isn’t a side gig here; it’s a national game-changer.

Scaling Up with CCUS and Grid Enhancements

Over in Kertih, they’re capturing CO₂ from hydrogen-derivative plants and either injecting it into underground formations or feeding it into industrial processes, effectively closing the emissions loop. Meanwhile, TNB is beefing up transmission lines to handle those extra megawatts and prepare for cross-border power swaps under the upcoming ASEAN Power Grid. It’s a one-two punch of beefed-up hydrogen infrastructure and a stronger electricity network.

Behind the scenes, PETRONAS and TNB have joined forces on both hydrogen production and crucial grid upgrades, blending petroleum know-how with utility-scale power expertise. That partnership feels tailor-made for a project of this size.

Economic and Regional Impact

These initiatives aren’t just about cutting emissions—they’re primed to position Terengganu as a regional green energy hub. Local suppliers and contractors stand to cash in, while universities and technical institutes get a hands-on training ground. On the export side, green hydrogen and its derivatives could open fresh revenue streams, helping Malaysia diversify beyond its oil-and-gas roots.

Let’s face it, Malaysia’s energy story has been written in fossil fuels—first oil, then gas, even coal. But swinging commodity prices and sky-high climate targets nudged the government to chart a new path. A handful of pilot hydrogen projects up in Sarawak showed the tech was ready; Terengganu’s rich hydro resources and strategic spot made it the natural choice for the flagship hub.

By weaving together floating solar, hydropower, electrolysis and CCUS, Malaysia is showing how a resource-rich nation can pivot toward industrial decarbonization without starting from scratch. And if you ask around, a lot of oil-exporting countries might just be taking notes.