Value Creation Is The Bedrock Of Our Business ANNUAL INTEGRATED REPORT 2022 101 Sustainability Review RENEWABLE ENERGY & ENERGY MANAGEMENT WHY IT IS IMPORTANT Seeking alternative and cleaner energy is one of our efforts in contributing to climate action. Generating and consuming renewable energy will reduce our GHG emissions and accelerate our transition to a low-carbon economy. FGV is committed to produce clean energy as it offers a multitude of benefits to the environment, such as reducing emissions, lowering energy costs and mitigating air pollution. To achieve this, the Company generates renewable energy both for its internal consumption and for sale to the grid. In fact, some of FGV’s mills rely on renewable energy as their primary power source. Furthermore, FGV’s subsidiaries have explored alternative sources of renewable energy to power their facilities and equipment. PROGRESS AND ACHIEVEMENTS FGV supplies electricity to the National Grid as well as to local grids to power up rural areas via our biogas FiT power plants. The power plants are developed at FGV mills and provide an efficient form of renewable energy by converting biogas to bioenergy from POME. This reduces the need to burn more coal or natural gas which could be detrimental to the environment. In 2022, FGV started the commissioning of a biogas FiT power plants plant in Keratong 9, Pahang which is now pending approval by the Sustainable Energy Development Authority (SEDA). The plant is expected to be commercially operated in 2023. This project marks another milestone for the Group with a total of 12 MW of installed power capacity for FiT and Rural Electrification Projects. During the year under review, a total of 53,025 MWh of electricity was exported to TNB from eight biogas FiT power plants which were internally and externally funded. RENEWABLE ENERGY We are also continuing our efforts to enhance our green technology initiatives, which align with the government’s renewable energy agenda. In order to further reduce our carbon footprint, waste produced from our plantations, such as EFB, Sludge Palm Oil (SPO) and PKS, is used to generate green energy from biomass and biogas. Shredded EFB is used as a solid fuel to operate steam boilers, resulting in significant cost savings and reduced waste from our mills. Additionally, it is employed to generate energy and provide electricity to the national grid, local communities and FGV-owned businesses. FGV is currently in negotiations to collaborate with local manufacturers to supply EFB or shredded EFB as raw materials to produce EFB pellets, which is an alternative renewable energy solution that converts agricultural waste into sustainable energy. This approach reduces coal consumption, as well as carbon dioxide and methane emissions. In 2022, a total of 23,548 KWh of renewable energy was generated with 149,253 MT CO2e emissions avoidance from a total of 28 biogas power plants. 28 Biogas Power Plants installed across our mills 1st Organisation to develop a palm-based Bio-Compressed Natural Gas plant in Malaysia 2 Biomass Power Plants located in Sabah and Pahang to generate energy using 100% treated EFB
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