Malaysia’s FGV to beef up renewable energy projects as way to recover from COVID-19
KUALA LUMPUR, NNA - FGV Holdings Berhad, a major Malaysian agribusiness company, aims to increase returns from its renewable energy projects as part of its recovery strategy from the COVID-19 pandemic.
As a leading crude palm oil producer, FGV Holdings has already tapped into the renewable business through biogas capture at its palm oil mills.
“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,” Group CEO Haris Fadzilah Hassan said in a press release Monday.
The company said the power generation business through biogas capture at its palm oil mills will be one of the immediate projects to be carried out. Biogas is used as fuel for electricity generation through biogas engines to supply electricity to National Grid through the country’s feed-in tariff scheme, it added.
In 2006, FGV’s Serting Hilir mill in Negeri Sembilan was Malaysia’s first FIT project to achieve Commercial Operation Date, followed by three more mills in the southernmost state of Johor. This year, two more mills in Pahang, east of the capital, are expected to supply to the National Grid.
FGV Holdings, which was initially incorporated as a commercial arm of Federal Land Development Authority (FELDA) in 2007, also plans to start exporting palm kernel shell (PKS) to Japan as early as this year.
Japan’s PKS imports have grown three times to 1.3 million metric tons between 2015 to 2018 to sustain growing demand for clean energy output, prompted by the government initiatives in promoting renewable energy, according to the press release.