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Sime Darby Plantation to co-develop two biogas power plants with Cenergi

PETALING JAYA: Sime Darby Plantation Bhd’s (SDP) subsidiary Sime Darby Plantation Renewable Energy Sdn Bhd (SDPRE) has signed a term sheet with Cenergi SEA Bhd’s wholly owned subsidiary Cenergi RE Sdn Bhd (Cenergi) to co-develop two biogas power plants in SDP’s Malaysian operations at Sungai Dingin Estate in Kedah and Kok Foh Estate in Negri Sembilan.

SDP group managing director Mohamad Helmy Othman Basha said the latest partnership will accelerate the group’s carbon emission reduction targets.

“We are on track to reach our reduction target of 40% by 2030. To date, we have already achieved a relative carbon emission reduction of 18% through biogas initiatives alone. With the current biogas plan we are putting in place, we are expecting to achieve an estimated total of 28% reduction by the end of 2022,“ he said.

“Cenergi plans to realise these two projects that both parties are co-developing and also collaborate on other renewable energy initiatives, that would contribute towards SDP’s Greenhouse Gas reduction target,“ said Cenergi SEA Bhd group CEO Hairol Azizi Tajudin.

Besides the two new plants, SDP has 11 biogas plants across its operations in Malaysia, Indonesia and Papua New Guinea, and another nine are scheduled to be up and running in 2022. By 2030, SDP aims to have a total of 31 biogas plants.