SDP has embarked on a series of partnerships with established biogas players, as part of our asset-light strategy to reduce carbon emissions. At present, we have secured seven Feed-in Tariff renewable energy quotas for our mills. As at the end of 2020, two of these plants were already in operation. We expect more biogas projects to materialise by FY2021.
As of 2020, nine of our mills have been installed with biogas plants to capture methane, a high-impact GHG that is more potent than carbon dioxide and created when palm oil mill effluent (POME) is stored in retention ponds. This represents 10% of our mills with another nine in the pipeline. At current projections, when 50% of our current mills group-wide have biogas plants, we will be on track to achieve our target of 40% reduction in total operational emissions by 2030.
SDP has adopted 3 business models including one in partnership with TNB Energy Services Sdn Bhd through Sime Darby TNB Renewable Energy (SDPTRE), of 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
Chersonese Biogas Plant
The third business model is the Captive model which electricity generated by the biogas plant will be utilised for our own consumption i.e. by the mill and nearby communities.
Below is the list of the biogas plants that SDP has undertaken via the Captive model:
- Merotai Biogas Plant
- Pemantang Biogas Plant
- Rantau Biogas Plant