Johari Ghani: 170 palm oil mills install biogas facilities, surpassing NAPC target

New Straits Times

25-04-2025

PORT DICKSON: A total of 170 out of 446 palm oil mills installed biogas facilities last year, exceeding the National Agrocommodity Policy (NAPC) 2025 target of 155 mills and contributing to a reduction of greenhouse gas (GHG) emissions by 4.9 million tonnes of carbon dioxide (CO₂).
As such, Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani, called upon all palm oil millers to immediately develop the biogas industry.
"The development of the biogas industry has been proven to provide benefits and added value through the creation of job opportunities, economic growth, additional income and improved palm waste management — ultimately contributing to a better standard of living for rural communities," he told BuletinTV3 during a visit to the Cenergi Sua Betong Biogas Plant here today.
As the world's second largest palm oil producer, Johari said Malaysia is placing emphasis on implementing a circular economy at all stages of palm oil product production for better waste management.
"Capturing biomethane from palm oil industry waste, such as palm oil mill effluent (POME), can be used as a renewable energy source for electricity generation," he explained.
A total of 63.5 million tonnes of POME was produced in 2022, generation 1.8 billion cubic metres (m³) of biogas, capable of producing 1.22 gigawatts (GW) of energy per year.
The Sustainable Energy Development Authority (SEDA) allocated a 190MW feed-in tariff (FiT) quota for 2025, covering biogas, biomass and mini hydro projects, as well as 50MW specifically for biogas and 40MW for biomass.
Johari added that broader grid connection access is crucial to realising these projects.
He urged Tenaga Nasional Bhd (TNB) to further increase the connection capacity of palm oil mills to the national grid, enabling millers to invest and benefit from the use of palm biomass waste for renewable energy generation.
He noted that the shift in palm waste management strategy reflects Malaysia's commitment to environmental preservation.
"This is in line with Malaysia's pledge to achieve net zero carbon emissions by 2050, reduce carbon emissions by 45 per cent relative to gross domestic product (GDP) by 2030, and cut methane emissions by 30 per cent," he said.
To encourage more involvement from palm oil industry players, Johari called on millers unfamiliar with this concept to engage with Cenergi SEA Bhd to operate such biogas plants.
"Cenergi has the entire ecosystem in place. This biogas plant, with a capacity of 1.2 megawatts (MW), is operated by just seven people, all locals. They are qualified engineers and workers from the local community," he said.
Cenergi, a subsidiary of UEM Lestra Bhd, is one of the nation's sustainable energy solution providers, specialising in developing Malaysia's green industry, including renewable energy, waste management and green infrastructure.
The company currently operates 20 biogas plants nationwide, with 12 more under construction, bringing the total electricity generation capacity to 52.8MW and compressed natural gas BioCNG capacity to 65,000 million British thermal units.