63 ANNUAL INTEGRATED REPORT 2021 ADDITIONAL INFORMATION HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY RENEWABLE ENERGY Current Strengths • The world’s only palm plantation company with 28 biogas plants • Developed the world’s first commercial-scale palm-based bio-CNG via collaboration with MPOB at Sg Tengi Palm Oil Mill FGV is an early adopter of the circular economy system and has embarked on renewable energy initiatives since early 2000. The Renewable Energy Division is the backbone of the Group’s Waste-to-Wealth project whereby biomass (gas, solid, liquid) from our palm oil mills are used to produce biomass and biogas fuel for Feed-in-Tariff (FiT), local and rural grid connections, and bio-CNG. We supply and trade 14 types of biomass by-products such as Palm Kernel Shell (PKS), sludge palm oil and shredded Empty Fruit Bunch (EFB) fibre, contributing additional revenue to the Group. Our Renewable Energy business drives the Group’s initiative in carbon emission reduction through the operation of 28 biogas plants, reducing up to 117,246 MT of carbon emission in 2021, besides utilising biogas to power FiT and Rural Electrification Projects in eight sites located in Peninsular Malaysia and Sabah. The Group has reduced more than 100,000 tonnes of carbon dioxide (CO2) equivalent through our initiatives such as methane capturing and destruction using our biogas and bio-CNG plants, as well as fossil fuel (diesel) replacement. In 2022, we will enhance our support for the Group’s agenda to reduce carbon footprints. As such, we are currently building another 2 Megawatt (MW) FiT plant in Keratong 9, Pahang scheduled to be running in second quarter of 2022. Once completed, the project shall add another milestone to FGV with a total of 11.30 MW installed power capacity for FiT and Rural Electrification Projects. RUBBER Current Strengths • 50 years of experience in the rubber business • One of the top Technical Standard Rubber (TSR) producers with five rubber processing facilities and one Latex Concentrate plant across ASEAN • The sole producer of Green Rubber products in Malaysia The Plantation Sector’s market and product penetration strategies for the palm oil business is also applicable to FGV’s rubber business. With a combined production capacity of 238,000 MT, it fits into the Group’s long-term plan to become one of the world’s leading integrated and sustainable agribusinesses with a diversity of consumer products. Our rubber business is currently diversifying into the production of Green Rubber materials. Green Rubber is a modified Natural Rubber which has properties that can replace Synthetic Rubber for all types of tyre and engineering applications. This is in line with FGV ambition to advance into sustainable businesses and help to reduce the usage of synthetic rubber that is petroleum based materials. To boost this business, we are currently researching and developing product quality improvements.
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