05/10/2012 (Bernama) - Felda Global Ventures Holdings Bhd (FGV) said today it has not appointed any company to build biogas plants at its mills.

Referring to a report published in a local newspaper on Monday, it said to date no decision has been made with regard to the award of the contract.

It was reported that Weida (M) Bhd will build a biogas plant under a pilot project for FGVH to treat palm oil mill effluence in Kota Tinggi.

FGV said Weida was one of several companies that had been invited to submit proposals by Felda Palm Industries Sdn Bhd, a subsidiary of Felda Holdings Bhd, which is 49 per cent owned by FGV.

"However, the unit is still evaluating the proposals which will be subject to its tender evaluation processes," it said in a statement.

The company also said that FGV has neither consented nor authorised Weida to make any announcement using its name.

The report was also made without FGV's knowledge, said the statement.

Contrary to the report which said that the biogas project will be a pilot plant, FGV already has 12 existing biogas trapping plants installed at palm oil mills in locations such as Besout (Perak), Jengka 8 (Pahang) and Serting Hilir (Negeri Sembilan).

The latter is already hooked to the national grid, said FGV.

The FGV said the Felda Global Group is at the forefront of palm oil biomass projects -- generating renewable energy utilising the waste products from its upstream plantation operations.

It plans to have a total of 56 biogas capturing plants besides currently having two power plants, six compost plants, four mini-gasifier plants and one fuel pellet plant, it said.

The first biomass power plant in Sabah, the world's first Empty Fruit Bunch (EFB)-based clean development mechanism project, has been operating since 2005.

A second but the first grid-connected power plant is currently under construction in Jengka, will be ready by year-end.

The joint venture with Tenaga Nasional Bhd will supply 10.0 mega Watts of electricity to the national grid.

The Felda Group has unique capabilities to pursue biomas-based "green" energy projects.

Some 12 million tonnes of EFB, mesocarp, palm shells and old palm trunks are generated every year from its operations.

The group expects that by 2015, all EFB produced within the group will be fully consumed for the production of specific value-added products.

FGV is the world's third largest plantation operator by hectarage.