KUALA LUMPUR (Aug 1): Tenaga Nasional Bhd (TNB) and Petroliam Nasional Bhd (Petronas) have signed a joint feasibility study agreement (JFSA) on Tuesday (Aug 1) to affirm their commitment to advance studies for hydrogen business development in Malaysia.

According to a statement on Tuesday, the JSFA follows a memorandum of understanding that was previously signed by both companies. This partnership shows TNB and Petronas' shared goal of expediting the deployment of clean technologies, such as hydrogen and carbon capture, that aim to decarbonise the energy sector.

“This agreement serves as a testament to our unwavering dedication to uniting industry players and forging a powerful synergy. Together, we are committed to exploring and developing business ventures in the promising field of green hydrogen,” said TNB president and CEO Datuk Indera Baharin Din.

Meanwhile, TNB chief strategy and venture officer Datuk Megat Jalaluddin Megat Hassan said the collaboration will help national economic growth and prosperity and create numerous job opportunities.

"Together, we [Petronas and TNB] look forward to building an ecosystem of technology and infrastructure for the clean energy needed to progress the nation’s sustainability goals and support an equitable energy transition for future generations," said Petronas senior vice president of project delivery and technology Datuk Bacho Pilong.

The two organisations plan to use hydrogen to reduce carbon emissions in sectors such as transportation, manufacturing, and power generation.

TNB, as per its commitment to accomplishing Net Zero by 2050, is exploring the utilisation of ammonia and hydrogen as co-firing options in its generation fleet.

In addition, the collaboration offers TNB the opportunity to venture into hydrogen usage in mobility and manufacturing.

Through this study, both energy companies, alongside Gentari, the clean energy company founded by Petronas, will gain crucial insights from the opportunities and difficulties presented by the deployment of green hydrogen.

Advancements in this endeavor will enable the exploration and discovery of innovative solutions, identification of potential off-takers for green hydrogen and establishment of a synergetic structure between TNB and Petronas.

At the time of writing, TNB slipped five sen or 0.52% to RM9.55, for a market capitalisation of RM55.27 billion.