In 2024, the renewable energy sector continues to evolve amid growing sustainability commitments and regulatory changes. Demand for cleaner energy remains strong, but Forex fluctuations, particularly in the Japanese Yen, have affected the competitiveness of palm kernel shell (PKS) exports, as Japan remains the primary offtaker. Despite this, FGV has maintained its market presence by completing four shipments of Green Gold Label (GGL)-certified PKS to Japan, each carrying 10,000 MT, ensuring compliance with stringent sustainability standards. At the same time, pricing pressures from Indonesian suppliers and evolving EUDR compliance in the biodiesel industry have added further complexity. In response, FGV has strengthened its certified biofuel portfolio, with International Sustainability & Carbon Certification (ISCC), and National Italian Scheme (NIS)-certified sludge palm oil (SPO) production reaching approximately 17,000 MT. This enhances traceability and provide access to premium markets, while supporting the growing demand for sustainable fuel alternatives. FGV remains focused on strengthening its position through strategic collaborations, including partnerships with MPOB to enhance energy efficiency and meet renewable energy demand. These efforts also supports rural electrification, contributing to Malaysia’s clean energy transition while maximising the potential of palm oil by-products. OUTLOOK AND PROSPECTS The renewable energy segment is set for further growth, driven by increasing industrial and rural demand for sustainable energy solutions. Our strategic focus includes scaling up Biogas-to-Electricity (BTE) and Bio-Compressed Natural Gas (CNG) projects, while diversifying biomass feedstock supply chains to serve both local and international markets. Additionally, we aim to penetrate the certified SPO to meet global demand for sustainable aviation fuel (SAF) and biodiesel, leveraging the growing emphasis on renewable energy. To enhance operational efficiency, we will commission new FiT and Bio-CNG plants, upgrade existing facilities, and implement process improvements. Regular maintenance and resource optimisation will remain central to maximising energy output, supported by cost monitoring initiatives to drive greater efficiency. We remain committed to maintaining internationally recognised certifications such as ISCC, NIS, and GGL, ensuring compliance with global sustainability standards and strengthening market credibility. By advancing waste-to-energy technologies, FGV will continue to support global decarbonisation efforts while delivering long-term value to stakeholders. RENEWABLE ENERGY WHO ARE WE AND WHAT WE DO BUSINESS ENVIRONMENT The Renewable Energy segment is a key driver of our waste-to-wealth initiatives, converting palm oil mill by-products into clean energy solutions. As the only plantation company operating 24 biogas plants nationwide, we generate electricity under the Feed-in Tariff (FiT) programme and through a rural electrification project. These efforts optimise palm oil waste while reinforcing our commitment to Malaysia’s transition towards cleaner and more sustainable energy sources. We support Malaysia’s shift toward cleaner and sustainable energy by optimising palm oil waste. 89 Sec 05 DRIVING VALUE THROUGH BUSINESS GROWTH (BUSINESS REVIEW)
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