KUALA LUMPUR: Johor Plantations Bhd has commenced commercial operations at its first biomethane plant, located in Sedenak, Johor.
In a statement, the group said the plant, which is linked to Gas Malaysia Bhd’s (GMB) natural gas distribution network, marks a new milestone towards its ambition to provide sustainable energy solutions.
Under the terms of a gas purchase agreement, Gas Malaysia unit Gas Malaysia Virtual Pipeline Sdn Bhd will purchase biomethane from Johor Plantations subsidiary Kulim Green Energy Venture Sdn Bhd over a 15-year contract period.
It said the project, valued at about RM25mil, aims to deliver a minimum annual volume of 250,000 MMBtu of biomethane gas to Gas Malaysia Virtual Pipeline, which will also contribute to the circular economy and promote sustainable energy.
Johor Plantations managing director Mohd Faris Adli Shukery said the investment is aligned with its long-term strategy and belief in the potential of biomethane commercialisation.
'It also signifies Johor Plantations' commitment to diversifying our business lines and venturing into green technology.
"We firmly believe that the production of renewable energy complements our oil palm business, and contributes not only to our financial performance but also to our environmental sustainability," he said.
He added that the initiative aligns with Johor Plantations’ aspiration to achieve net-zero carbon emissions by 2050, in accordance with Malaysia's Carbon Aspirations.