KUALA LUMPUR  (May 20): Felda Global Ventures Holdings Bhd (FGV) has scored another first in spearheading best practises in sustainability by launching its fourth biogas power plant which will supply electricity to 3,000 households in Felda Umas in Tawau, Sabah.

The RM14 million plant, operated by its subsidiary, Felda Palm Industries Sdn Bhd, started operations in 2012 and is capable of generating 1,000 cubic metres of biogas per hour.

Liquid effluents from palm oil mills are converted into biogas before it is used to generate electricity, a company statement said today.

Prior to the establishment of the power plant, which was launched by Minister of Energy, Green Technology and Water Datuk Seri Dr Maximus Ongkili here today, Felda Umas residents were dependent on fossil fuel powered generator sets for electricity.

"We trust this project will contribute significantly to the wellbeing of the community and help to minimise the constant power cuts that they have been experiencing," FGV Group President and Chief Executive Officer Mohd Emir Mavani Abdullah was quoted as saying in the statement.

He said as a global agribusiness player, renewable energy was part of the company's commitment to sustainability practices.

"In the long-term, generating renewable energy would be the best alternative source for electricity as well as lessen our dependency on fossil fuel," said Mohd Emir.

The FGV statement also said the setting up of the plant had created job opportunities for the surrounding community.

With the recent announcement on Feed-in Tariff (FiT) for the sale of electricity from biogas, Felda Palm Industries received a FiT quota of 9.2 megawatt in 2014, 7.2 megawatt in 2015 and 5.6 megawatt in 2016, it said.