Johor Plantations Group Subsidiary awarded BioNexus status from the Ministry of Science, Technology And Innovation

Johor Plantations Group Subsidiary Awarded BioNexus Status

Business

JPG Greenergy Ventures Sdn Bhd, a subsidiary of Johor Plantations Group Berhad (“JPG”), has been awarded BioNexus Status by the Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation) under the Ministry of Science, Technology & Innovation (“MOSTI”). JPG holds a 55% equity interest in JPG Greenergy Ventures Sdn Bhd, with the remaining 45% held by MTC Orec Sdn Bhd. This prestigious recognition signifies JPG Greenergy Ventures’ groundbreaking achievements in transforming palm oil mill effluent (“POME”) into valuable biomethane, and their commitment to achieving net zero emissions by 2050. BioNexus Status empowers qualified companies to accelerate their growth in the biotechnology sector with benefits including fiscal incentives, funding, investment facilitation and advisory services.

YB Tuan Chang Lih Kang, the Minister of Science, Technology & Innovation, visited JPG’s Sedenak oil palm estate and the Sedenak Biomethane plant in Johor, and witnessed JPG’s innovative transformation of waste from palm oil production into biomethane. This initiative sets a benchmark in the sustainable disposal of palm oil byproducts within the renewable energy sector.


Building upon this initiative, JPG has secured a 15-year gas-purchase agreement with Gas Malaysia Green Ventures Sdn Bhd (formerly known as Gas Malaysia Virtual Pipeline Sdn Bhd). This agreement allows the injection of purified biomethane gas directly into the Natural Gas Distribution System (“NGDS”) for a commitment of 250,000 MMBtu per year. This project, which contributes to about 97,889 metric tonnes CO2 eq avoided, signifies the positive impact of their waste management solution in the palm oil mill industry in line with Malaysia’s renewable energy landscape and environmental goals.

“In line with the aspirations of the 12th Malaysian Plan to achieve net-zero GHG emissions by 2050, the BioNexus Status that was granted by MOSTI through the Bioeconomy Corporation is crucial in recognising the contributions of industry players in reducing harmful emissions and aligns with Thrust 5 of the National Biotechnology Policy 2.0, which focuses on advancing industrial biotechnology for a circular economy. With advancements in renewable energy technology, biomethane generation through biotechnological processing of waste is also charting a pathway towards the production of higher value energy sources such as biomethanol and hydrogen.”

“Therefore, this recognition will also enable companies such as JPG to continue developing and innovating new technologies that can bring Malaysia closer to achieving its goals of becoming a high-technology country by 2030. Additionally, biotechnology is an enabler that not only provides a solution to waste management but also contributes to the bigger agenda of decarbonisation. As Malaysia has about 450 mills and with 10 biogas projects similar to JPG’s, it is estimated that we can reduce CO2 equivalent by 1.2 million tonnes. Hence, I would urge more industry players to emulate JPG’s commitment and harness the potential of waste to wealth to accelerate the sustainability agenda in Malaysia,” said YB Tuan Chang Lih Kang, the Minister of Science, Technology & Innovation.

“JPG Greenergy Ventures exemplifies how innovation and sustainability can collectively drive economic growth,” said Mr Mohd Khairul Fidzal Abdul Razak, Chief Executive Officer of Bioeconomy Corporation. “The BioNexus Status is a recognition of the company’s significant contributions to the industrial biotechnology sector in advancing in sustainable practices. Furthermore, their commitment to achieving net zero emissions by 2050 aligns perfectly with our national goals. We look forward to working closely with JPG Greenergy Ventures and JPG in driving renewable energy and reducing carbon emissions to address national issues such as environmental sustainability, waste reduction and resource efficiency, ultimately contributing to a resilient circular bioeconomy.”

“The BioNexus Status for JPG Greenergy Ventures positions JPG for continued innovation and strengthens their leadership role in the Malaysian bioeconomy sector. This commitment to responsible practices aligns perfectly with the United Nations Sustainable Development Goals (UNSDGs), particularly SDG 13: Climate Action. JPG is dedicated to being part of this mission to reduce greenhouse gas (GHG) emissions alongside other industry players through its renewable energy initiatives,” said Mr Mohd Faris Adli Shukery, Managing Director of JPG.

As Johor Plantations Group Berhad continues to pioneer renewable energy solutions and expand its operations, the company is set to play a crucial role in driving Malaysia’s agribusiness industry and environmental sustainability goals. The recognition from MOSTI for JPG Greenergy Ventures, combined with the upcoming listing on Bursa Malaysia, positions JPG for sustained growth and leadership in the palm oil and renewable energy sectors.

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