FGV is the world’s only palm plantation company operating 28 biogas plants

the first to develop a palm-based Bio-Compressed Natural Gas (Bio-CNG) plant in collaboration with MPOB in 2015 at Sg Tengi Palm Oil Mill.

Its Renewable & By-products Division is a key driver of FGV’s Waste-to-Wealth strategy, converting palm oil mill biomass (gas, solid, and liquid) into biogas, Bio-CNG, and renewable energy for grid integration and rural electrification. The Group has been actively advancing renewable energy initiatives since the early 2000s, including participation in Malaysia’s Feed-in Tariff (FiT) programme to supply renewable electricity to the national grid.

Under FGV Palm Industries (FGVPI), the division comprises three units: By-Products (trading and logistics), Renewables (biogas, Bio-CNG, FiT plants, and power operations), and Business Development (new biomass-based opportunities). It operates multiple biogas and Bio-CNG plants, alongside rural electrification projects in Sabah, including power generation assets such as Sahabat Biomass-EFB (7.5 MW) and FTJ Power Plant-EFB (12.5 MW), supplying electricity to FELDA Sahabat, Cenderawasih, and Umas.

These initiatives have collectively reduced more than 100,000 tonnes of CO₂ equivalent through methane capture, Bio-CNG production, and fossil fuel substitution, reinforcing FGV’s commitment to sustainable and circular bioenergy solutions.

The Journey

2016 - 2020

2011 - 2015

2006 - 2010

2001 - 2005

1995 - 2000

2016 : 23 biogas capturing plants successfully commenced operations
Baiduri Ayu & Umas Biogas Plants started to operate for rural electrification programme.
2017 : FTJ Power Plant-EFB on target for up to 12.5 MW as Feed-In Tariff Project
First foray into bio-CNG through a strategic collaboration with MPOB and PEMANDU – certified World’s First Palm-Based Commercial Scale BioCNG Plant

Zero investment-oriented projects with three parties;

2018 : Green & Smart completed 1 biogas power plant as Feed-In Tariff Project
2019 : CGESB successfully completed 4 biogas power plants as Feed-In Tariff Project
2019 : 30 biogas capturing plants successfully commenced operations

Serting Hilir Biogas Plant was successfully connected to the grid, becoming the nation’s first Biogas Power Plant for grid connection project.
2012 : SEDA was created & Feed-in-Tariff was established – selling electricity to National Grid is revenue generating endeavor without depending on CDM
FGV continued to build more biogas projects in mills, effectively increasing wastewater treatment for selected mills, ensuring regulatory compliance while minimising carbon footprint.

2006 : CDM was strongly promoted for biogas capture
EFB compost facilities installed were targeted for internal consumption, utilising POME to be eligible for CDM projects
Serting Hilir and Besout became the first few biogas plant constructed in Malaysia

Board Of Directors approved first EFB-based power plant in Sahabat Complex for rural electrification
IPP Sahabat recognised as First Clean Development Mechanism (CDM) Project in Malaysia

1998 : R&D collaboration with the Malaysian Palm Oil Board (MPOB)
1999 : Designed and built Empty Fruit Bunches (EFB) processing equipment

Key Initiatives

Rural Electrification

Biogas is used as a diesel substitute to generate electricity for local grids at Gugusan Umas and Baiduri Ayu, reducing power generation costs and displacing fossil fuels. The system provides up to 24-hour supply to meet rural mini-grid demand fluctuations. This initiative also helps preserve natural ecosystems and river cleanliness, while improving the quality of life for local communities.

National Grid

Biogas is used as fuel for electricity generation via gas engines, supplying power to the national grid under the Feed-in Tariff (FiT) mechanism regulated by SEDA Malaysia. FGV has actively supported national renewable energy initiatives, with Serting Hilir as the first FiT project in Malaysia to achieve COD in 2006.

Subsequent projects, including Tenggaroh, Maokil, and Nitar, achieved COD in 2016 with a combined capacity of 4.0 MW, followed by Triang and Keratong 9, further expanding FGV’s renewable energy portfolio.

Renewable Energy Plants

Biogas Plants

Biogas plants play a key role in mill operations by improving wastewater treatment, ensuring regulatory compliance, and enhancing effluent discharge quality. They also capture and utilise methane (50–65% of biogas composition), significantly reducing the mills’ carbon footprint.

With methane’s high calorific value, biogas can be further utilised for additional revenue streams such as Feed-in Tariff (FiT) electricity generation and Bio-CNG production, depending on plant capacity and location.

Composting Plants

We operate four composting plants with a total annual capacity of 41,700 MT, located in Maokil (Johor), Sampadi (Sarawak), Jengka 21 (Pahang), and Kalabakan (Sabah).

Our compost organic fertiliser is produced through the aerobic decomposition of Empty Fruit Bunches (EFB) combined with Palm Oil Mill Effluent (POME). It helps neutralise soil conditions, improve moisture retention and soil structure, and enhance nutrient uptake efficiency by plants.

EFB Power Plant

We developed our first biomass power plant at FELDA Sahabat, Lahad Datu, Sabah, and later established FTJ Biopower Sdn Bhd through a joint venture with Tenaga Nasional Berhad (TNB) in Jengka, Pahang.

The Sahabat Empty Fruit Bunch (EFB) biomass plant, a cogeneration facility, began operations in May 2006. It produces steam and electricity for Sahabat Oil Products, Sahabat Kernel Crushing Plant, and domestic use within FELDA Sahabat.

The FTJ Power Plant, which started operations in September 2016, supplies electricity to the National Grid under the Feed-in Tariff (FiT) programme with a capacity of 12.5 MW. It utilises EFB as fuel and is equipped with key supporting systems including boilers, a water demineralisation plant, cooling towers, and emission control systems.

The Sahabat plant is also a Clean Development Mechanism (CDM)-registered project, having generated Certified Emission Reductions (CER) of 72,380 tCO₂e between 2006 and 2009.

Extraction Plant

In October 2018, FGV signed a Build-Own-Operate-Transfer (BOOT) agreement with Eonmetall Carotene Oil Sdn Bhd (ECOSB) to develop the first Palm Fibre Oil Extraction (PFOE) plant within its palm oil mills.

ECOSB, a subsidiary of Eonmetall Group Berhad, specialises in the construction and operation of palm fibre oil extraction plants across Malaysia.

By-products

Oil palm by-products are residues generated from palm oil processing, alongside the main outputs of crude palm oil and palm kernel. These include sludge palm oil, mesocarp fibre, palm kernel shell, and empty fruit bunches.

These residues can be further utilised to produce value-added products used in industries such as soaps, animal feed, biofuels, candles, cosmetics, toiletries, and pharmaceuticals.

Renewable Energy & By Products

FGV is the world’s only palm plantation company operating 28 biogas plants

The Journey

2016 - 2020

2011 - 2015

2006 - 2010

2001 - 2005

1995 - 2000

Key Initiatives

Rural Electrification

National Grid

Renewable Energy Plants

Biogas Plants

Biogas Plants

Composting Plants

Composting Plants

EFB Power Plant

EFB Power Plant

Extraction Plant

Extraction Plant

By-products

Bunch Ash

Sludge Palm Oil (SPO)

Empty Fruit Bunch (EFB)

Palm Kernel Shell (PKS)

Scrap Iron

Palm Mesocarp Fibre

Empty Fruit Bunch (EFB) Shredded

Scum Oil

Decanter Cake

Dried Long Fibre (DLF)

EFB Compost Organic Fertilizer

Palm Kernel Oil

Black Soil (Tanah Hitam)

Solid

Explore More

About Us

Our Businesses

Media Centre

Contact Us