KUALA LUMPUR: FGV Holdings Bhd's subsidiary is teaming up with two companies to look into the potential development of 35 brownfield and greenfield sites to produce bio-compressed natural gas (bio CNG).
FGV said on Wednesday its 72% owned FGV Palm Industries Sdn Bhd had inked an MoU with Sime Darby Energy Solutions Sdn. Bhd. and Biotek Dinamik Sdn Bhd.
“The collaboration will involve the potential development of 35 brownfield and greenfield sites owned by FGVPI, over an agreed timeframe to produce bio CNG.
“Bio CNG is viable and sustainable alternative to fossil-derived natural gas that will be explored for both local and export market for potential industrial consumption and vehicle conversion on build-own-operate basis, ” FGV said.
It also said the collaboration would enable the parties to leverage on each partner’s area of expertise and experience in palm oil and natural gas industry.
“Renewable energy is considered as an area of further expansion for FGV due to its growth potential and in line with the government's focus on renewable energy, ” it said.