Biogas released from Palm Oil Mill Effluent (POME) is the single largest emission source of SDP’s oil palm milling operations. The biogas plants capture and utilize POME to generate electricity which indirectly meet SDP’s goal of reducing the carbon footprint by 40%.

The Group has partnered with many different players to unlock the value from our byproducts whilst doing good to the environment. The Group’s focus for the coming year is to execute plans to reduce SDP’s carbon emission.

SDP has adopted 3 business models which one of them is partnership with TNB Energy Services Sdn Bhd through Sime Darby TNB Renewable Energy (SDPTRE) which SDP owns 51%. SDPTRE supplies green electricity to the Malaysian power grid through the Sustainable Energy Development Authority Feed-in Tariff (FIT) program. Under SDPTRE, 1 new biogas plant is currently under construction which is Kempas Biogas Plant and 2 biogas plants are already in operation:
  • Flemington Biogas
  • Hadapan Biogas

Flemington Biogas Plant


The second business model is through a more unique asset-light business model that is business model on a Build-Own-Operate-Transfer (BOOT) basis. Through this asset light business model, SDP will only lease the estate land and sell POME for biogas production to the appointed contractor. The investment and operational cost will be borne by the contractor.  Below is the list of new biogas plants that SDP undertakes via BOOT ; West Biogas Plant, Chersonese Biogas Plant, Sua Betung Biogas Plant, Diamond Jubilee Biogas Plant, Sri Intan Biogas Plant, and Pagoh Biogas Plant.

Chersonese Biogas Plant

Excavation of digester lagoon ongoing at West Oil Mill

There are currently 9 operational biogas plants with 7 additional locations planned for 2020 - 2025

Third business model is the Captive model which electricity generated by the biogas plant will be utilized for own consumption i.e. by the mill and nearby communities. Below is the list of new biogas plants that SDP undertakes via Captive:
  • Merotai Biogas Plant
  • Permantang Biogas Plant
  • Rantau Biogas Plant
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