In the global push for net zero, many companies talk about sustainability, but few manage to turn words into action. FGV Holdings Bhd stands out as one of the rare exceptions. Once primarily known as an agribusiness giant, FGV is quietly evolving into a renewable energy (RE) leader under group CEO Dato’ Fakhrunniam Othman.
Today, FGV operates one of Southeast Asia’s most diverse renewable energy portfolios, spanning biogas, biomass, biomethane, solar, and certified biofuels. By converting palm oil by-products into clean, exportable energy, the company is powering homes, industries, and export markets. For FGV, sustainability is not just about carbon targets—it is about redefining the palm oil business, turning it into a catalyst for climate action while driving growth.
From Waste to Energy: Building a Circular Economy
Palm oil production generates large quantities of organic residues such as palm oil mill effluent (POME), empty fruit bunches (EFB), mesocarp fibre, and palm kernel shells (PKS). If left untreated, these wastes release methane, a greenhouse gas far more potent than carbon dioxide.
Through 24 biogas plants—the largest network among Malaysian plantation peers—FGV captures methane and converts it into electricity, which is sold to Tenaga Nasional Bhd under the Feed-in-Tariff (FiT) scheme. Biomass residues are used to generate heat and steam for mills, creating a total renewable energy output of approximately 150MW: 100MW from biogas and biomass, and an additional 50MW from biofuel through PKS utilisation. These initiatives bring FGV closer to its 200MW Net Zero 2050 target.
At the company’s mills, by-products are upcycled into fertiliser or fuel, while compost from EFB and POME enriches the soil, improving yields—a simple yet powerful example of circular economy principles. Flagship projects like the Triang Biogas Plant in Pahang and the Umas Plant in Tawau showcase how renewable energy can deliver both financial and social impact, powering tens of thousands of homes.
Cutting Carbon, Driving Impact
In 2024 alone, FGV exported 33,438MWh of biogas electricity, reducing approximately 25,882 tonnes of CO₂ emissions—an increase of 20% from the previous year. The group has pledged to halve greenhouse gas emissions by 2030 and achieve net zero by 2050, with targets validated by the Science Based Targets initiative (SBTi).
Every new plant expands FGV’s methane-capture network, preventing one of the world’s most potent greenhouse gases from entering the atmosphere, proving that climate leadership can coexist with operational efficiency.
From Local Mills to Global Markets
FGV’s renewable energy strategy also creates export value. Its Green Gold Label-certified PKS are shipped to Japan under a premium low-carbon biomass programme, while ISCC-certified feedstock qualifies for Europe’s sustainable biofuel and Sustainable Aviation Fuel supply chains. FGV is also partnering with PETRONAS and Sime Darby Plantation to produce SAF from palm oil mill waste, further advancing its renewable energy transition.
Rooftop solar rollouts across mills and offices are helping diversify FGV’s RE mix while cutting electricity costs and emissions. “We are proving that Malaysia’s palm oil industry can lead in green energy exports, not just crude palm oil,” says Fakhrunniam.
Policy and Partnerships Driving Growth
Renewable energy projects are capital-intensive, with typical payback periods exceeding eight years. FGV mitigates risks through strategic partnerships, scale, and strict governance under GGL and ISCC standards, ensuring feedstock consistency and financial discipline.
FGV’s efforts align with Malaysia’s National Energy Transition Roadmap (NETR), contributing to energy efficiency, renewable energy, bioenergy, and green mobility. The company is also exploring hydrogen and carbon capture for future growth. 
The Road Ahead
FGV’s renewable energy roadmap includes expanding methane capture across all mills, scaling solar capacity, developing biomethane and bio-CNG plants, and decarbonising its logistics fleet.
“Our mills are no longer just processing plants—they are power generators and biomass hubs driving the circular economy,” Fakhrunniam explains. “We are turning waste into wealth and powering a sustainable future for Malaysia.”
FGV’s journey demonstrates that the palm oil sector can be part of the climate solution, proving that sustainability can be both purposeful and profitable.
