UAE-based investment firm Bin Zayed International (BZI) has assumed the lead investor role in a 200MW green hydrogen project in Terengganu, Malaysia, partnering with local developer Nova Re Suria (NRES).
The Paka Green Hydrogen Production Project (PGH2P), located in Paka, will rely on alkaline electrolysis powered by renewable electricity from the grid, targeting an annual output of roughly 30,000 tonnes of green hydrogen once operational.
The initiative positions Malaysia within a growing regional hydrogen market projected to expand at approximately 4.8% annually, while the global hydrogen equipment market continues to grow more than three times faster. Analysts have noted that delayed deployment of large-scale facilities risks the country falling behind in the international hydrogen value chain.
To support commercial uptake, China Jiangsu Guofu Hydrogen Energy (GUOFUHEE) will manage global promotion and distribution of the hydrogen and derivative products, ensuring that PGH2P addresses both domestic industrial demand and international markets. Engineering, procurement, and construction (EPC) responsibilities have been awarded to China Energy Engineering Corporation (CEEC), reflecting an increasingly integrated cross-border supply chain for hydrogen infrastructure.
BZI’s Group Managing Director, Dr. Shamir Kumar Nandy, emphasized that the investment aligns with the firm’s strategy of high-impact clean-energy projects while advancing Malaysia’s broader energy transition. “Our participation in PGH2P represents a strategic step toward scaling renewable hydrogen production in Southeast Asia and integrating the region into the global green hydrogen economy,” he stated.
While Malaysia has set a target to produce two million tonnes of blue hydrogen annually, PGH2P represents one of the country’s most significant green hydrogen investments to date. Blue hydrogen production relies on natural gas with carbon capture, and government targets indicate that fossil-based hydrogen will remain a transitional cornerstone for the near term. PGH2P, in contrast, demonstrates a move toward fully renewable production, underlining the need for accelerated deployment of green projects to complement policy objectives.
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