FGV: Power generation among immediate projects to boost returns from renewable energy

KUALA LUMPUR (May 18): FGV Holdings Bhd said today power generation is among immediate projects that could be carried out as part of the oil palm plantation group’s plan to boost returns from renewable energy projects, which constitute a part of the company’s recovery strategy from the impact of the Covid-19 pandemic.

In a statement today, FGV said the power generation business could be carried out through its biogas capture at its oil palm mills.

"Biogas is utilised as fuel for electricity generation via biogas engines to supply electricity to National Grid through Feed-In-Tariff (FIT) mechanism governed by Sustainable Energy Development Authority Malaysia (SEDA Malaysia). Biogas is also used internally 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 FIT project in Malaysia to achieve Commercial Operation Date (COD) in 2006 followed by Tenggaroh, Maokil and Nitar mills in Johor. Triang and Keratong 9 mills in Pahang are the latest to supply to the National Grid this year,” FGV said.

FGV group chief executive officer Datuk Haris Fadzilah Hassan said in the statement the waste-to-wealth initiative has always been an important element for FGV’s business in view of 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,” Haris Fadzilah said.