KUALA LUMPUR: Sime Darby Plantation Bhd’s (SDP) subsidiary SDP Renewable Energy Sdn Bhd plans to develop two biogas power plants.

       The venture will be undertaken with the largest grid-connected palm oil mill effluent biogas developer in Malaysia, Cenergi SEA Bhd’s wholly owned subsidiary Cenergi RE Sdn Bhd.

       In a statement, SDP said its unit has signed a term sheet with Cenergi on Oct 9, 2021 to co-develop the plants in SDP’s operations at the Sungai Dingin estate in Kedah and Kok Foh estate in Negri Sembilan.

       To date, Cenergi has developed three biogas power plants for SDP’s palm oil mills which are currently operational, while two others are under construction with targeted completion in November 2021 and mid-2022, it said.

       SDP’s group managing director Mohamad Helmy Othman Basha said the group has been energetically pursuing renewable energy solutions to meet its emission reduction targets.

       “This latest partnership will accelerate our progress and we are well on track to reach our reduction target of 40% by 2030.

       “To date, we have achieved a relative carbon emission reduction of 18% through biogas initiatives alone and with the current biogas plan, we are expecting to achieve 28% reduction by the end of 2022,” he said.

       Besides the two new plants, SDP has 11 biogas plants in Malaysia, Indonesia and Papua New Guinea, and nine more are scheduled to be up and running in 2022.

       By 2030, SDP aims to have a total of 31 biogas plants. — Bernama