24/11/2025 (The Malaysian Reserve) - FGV Holdings Bhd is accelerating its shift from a traditional agribusiness player into one of Malaysia’s most diversified renewable energy (RE) producers, leveraging palm waste to generate biogas, biomass, biomethane, solar power and certified biofuels.

Under group CEO Datuk Fakhrunniam Othman, the company positions sustainability as both a purpose-driven mission and a scalable commercial strategy.

“We view RE not as a cost but as a core growth pillar,” he told The Edge.

He stated that FGV is converting organic by-products from its plantations into energy sources that support mills, surrounding communities and export markets.

With 24 biogas plants, the largest network among Malaysian plantation companies, FGV captures methane from palm oil mill effluent and channels it into electricity sold to Tenaga Nasional Bhd (TNB).

Its renewable portfolio now produces the equivalent of about 150MW in combined energy output, marking strong progress toward its 200MW Net Zero 2050 target.

At the same time, FGV upcycles empty fruit bunches, kernel shells and mesocarp fibre into fertiliser, steam and biofuel in a circular system.

“Nothing goes to waste, everything generates value,” Fakhrunniam said.

Projects such as the Triang Biogas Plant in Pahang and the Umas facility in Tawau, Sabah, show how renewable initiatives can generate income while electrifying thousands of homes.

The company’s decarbonisation efforts are also yielding measurable results.

In 2024, FGV exported 33,438MWh of biogas electricity, cutting an estimated 25,882 tonnes of carbon emissions as part of its SBTi-aligned climate commitments.

FGV’s sustainability drive is also creating new export opportunities. Its Green Gold Label-certified palm kernel shells are shipped to Japan for RE use, while its ISCC-certified feedstock qualifies for Europe’s sustainable biofuel and aviation fuel supply chains.

Budget 2025 further underscored FGV’s role through the government’s partnership with Petroliam Nasional Bhd (Petronas) and Sime Darby Plantation Bhd to develop sustainable aviation fuel from palm waste.

“We’re proving that Malaysia’s palm oil industry can lead in green exports, not just in crude palm oil but also in certified low-carbon energy,” Fakhrunniam explained.

The company maintains strict financial discipline despite long project payback periods, pairing global technology partnerships with consistent feedstock supply from its mill network.

This model embeds sustainability directly into profitability and long-term shareholder value.

Aligned with Malaysia’s National Energy Transition Roadmap (NETR), FGV is active in energy efficiency, RE, bioenergy and green mobility, while exploring hydrogen and carbon capture as future pathways.

“Our mills can be more than processing plants. They can be power generators and biomass hubs driving the circular economy,” he said.

FGV’s forward plans include expanding methane-capture systems across all mills, scaling solar installations, developing biomethane and bio-compressed natural gas (CNG) facilities and reducing emissions from its logistics fleet.

Its trajectory reflects a broader industry shift: Sustainability is no longer peripheral but central to business growth.

“Our journey proves that the palm oil sector can be part of the climate solution. It’s about turning what was once waste into wealth — and powering the nation’s sustainable future,” Fakhrunniam said.

https://themalaysianreserve.com/2025/11/24/fgv-accelerates-shift-to-palm-based-re/