Also of significance is the utilisation of waste and by-products to generate biomass and biogas: Palm Oil Mill Effluent (POME) undergoes anaerobic digestion that produces biogas (mostly methane). Our biogas facilities capture the methane which is then utilised for carbon reduction and renewable energy through combustion. To date, FGV has 28 biogas plants installed in palm mills that capture methane from our wastewater treatment plants. Empty Fruit Bunches (EFB) are shredded and used as solid fuel for operation of steam boilers, which delivers significant cost savings and waste elimination from our mills. We currently have two biomass power plants in operation. Our plant in Lahad Datu, IPP Janakuasa Sahabat, Sabah has a capacity of 7.5MW while in Jengka, Pahang, FTJ Power has a 12.5 MW capacity to generate energy using 100% treated EFB. Both plants supply electricity to the national grid and regional townships as well as FGV owned businesses. Sludge Palm Oil (SPO) is mainly used for non-food palm-based products. In addition, it has been established that SPO has the potential to be used as aviation fuel in Europe under Renewable Energy Directive II (RED II). FGV is currently exploring business opportunities to market our SPO with oil and gas giants such as Gunvor, Vitol, Petronas, STX among others. Palm Kernel Shell (PKS) is mainly used for biomass fuel for power generation and is in demand from international clients as a form of sustainable fuel for power plants. Through our subsidiary, FGV Palm Industries (FGVPI), we recently embarked on a new global business collaboration that utilises palm waste for renewable energy generation. In July 2021, FGVPI shipped around 5,000 tonnes of PKS as biomass to eREX in Japan for renewable power generation. eREX is a listed company and the leading Japanese biomass power producer with a 50MW biomass plant among its stable of biomass powerplants. Moving forward, FGV hopes to expand its reach to Japanese consumers. Currently, Malaysia is Japan’s second-largest source of PKS, having exported 761,000 tonnes last year. Carbon management is practiced across all our businesses. For instance, in our Sugar business, MSM is reducing carbon emissions from sugar refinery process by taking innovative steps to capture and utilise the carbon dioxide produced from the combustion of natural gas. Instead of being completely released to the atmosphere, a portion of the CO2 is redirected and utilised for production of limestone which is then used to remove impurities and colour from the sugar solution during the sugar refining process. REDUCING HFC USAGE Hydrofluorocarbons (HFCs) are synthetic greenhouse gases which are commonly used in refrigeration and air conditioning. HFCs have high GWP, and despite the small amount of leakages to the atmosphere, the impacts to global warming is detrimental. FGV has been using zero-GWP refrigerant such as Ammonia in some of our oil refinery operations in Sabah and Johor, as an alternative and substitute to HFCs. As part of our climate action plan, FGV strives to align our commitment with the national target and the goals of Kigali Amendment of the Montreal Protocol that seek to phase-out HFCs usage. 111 CLIMATE ACTION & ENVIRONMENT PROTECTION ADDITIONAL INFORMATION SUSTAINABILITY REPORT 2020/2021
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