FGV focuses on 'waste-to-wealth' renewable energy projects


  • Corporate News
  • Monday, 18 May 2020

Group CEO Datuk Haris Fadzilah Hassan said on Monday the “waste-to-wealth” initiative was important to FGV due to the abundant resource derived from its plantation and mill activities.

KUALA LUMPUR: FGV Holdings Bhd is stepping up its renewable energy projects in a move to speed up its recovery strategy from the Covid-19 pandemic.

Group CEO Datuk Haris Fadzilah Hassan said on Monday the “waste-to-wealth” initiative was important to FGV due to the abundant resource derived from its plantation and mill activities.

“These include producing biogas fuels (gas, solid and liquid) to generate power. This initiative can be enhanced further as part of the group’s recovery strategy post COVID-19. “We are reviewing the initiatives under the segment to come up with a solid plan that could be executed immediately,” he said.

Haris Fadzilah Hassan said the immediate projects that could be carried out is the power generation business through its biogas captures at its palm oil mills. FGV uses biogas for rural electrification in Sabah generating electricity to power-up home of settlers in Felda Sahabat, Felda Cenderawasih and Felda Umas.

FGV’s Serting Hilir mill in Negeri Sembilan was the first feed-in-fariff (FIT) project in Malaysia to achieve commercial operation date (COD) in 2006 followed by Tenggaroh, Maokil and Nitar mills in Johor. Triang and Keratong nine mills in Pahang are the latest to supply to the National Grid this year.

He said FGV’s associate MSM Malaysia Holdings Bhd’s plant in Tanjung Leman in Johor could run using shredded empty fruit bunches (EFB) supplied from the group’s mills in Johor.

He added this would enable FGV to save RM60mil in electricity a year.

FGV is also expecting to export palm kernel shells (PKS) to Japan as biofuel which shipments are expected to be within this year. PKS is widely used for biomass power plants throughout Japan for electricity power in-line with their government initiatives in promoting renewable energy.

FGV’s has a joint venture plan to build an EFB pulp and paper plant, potentially in Kuantan, Pahang which is expected to be completed in 2022/2023 that would utilise between half a million to one million tonnes of EFB annually.

Following the success of the first bio-compressed natural gas (bio-CNG) plant at Sungai Tengi Palm Oil Mill, in Selangor, FGV plans to set up bio-CNG/bio-LNG plants at potentially 35 of its palm oil mill through external investments, in addition to its FIT project, palm fibre oil extraction plants, biogas and renewable energy utility project in Sabah, which also involve external parties.

The renewable energy division which is under FGV Palm Industries Sdn Bhd consists of by-products, renewable energy and zero investment projects relating to biomass produced from palm oil mills.

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