29/08/2012 (Bernama) - Sime Darby Plantation Sdn Bhd (SDP) and its partner, Tenaga Nasional Bhd (TNB), have decided to move forward together to conduct a feasibility study on the potential of a biogas project.

"It is subject to further details to be agreed upon by the parties," said Sime Darby Bhd in updating the status of the agreement to Bursa Malaysia after Mitsui & Co Ltd withdrew as a consortium member in early this year.

The initiative is part of the world's second largest palm oil producer's plan to reduce carbon emissions and expand the proportion of renewables in its energy mix. To recap, the three parties signed the agreement in April last year.

In the same statement, Sime Darby also updated on the development of the Oil Palm Biomass Centre, whereby a consortium agreement has been drafted and is pending review by the respective parties.

SDP had previously signed an agreement with Agensi Inovasi Malaysia and other participants for the development of the centre