Johor Bahru, November 2024 – Johor Plantations Group Berhad (JPG) is on track to lead the palm oil industry as a next generation integrated palm oil company. This will be supported by a comprehensive 10-Year Roadmap which prioritises operational efficiency and expanding various revenue streams to ensure a sustainable and prosperous future.
“Our vision is to become the globally preferred producer of premium, sustainable, and traceable oils and fats, driven by our transformative purpose of producing sustainable essentials for mankind. As we look to the future, we are more committed than ever to elevating JPG to new heights, ensuring continuous value creation and long-term growth for our stakeholders,” said Mohd Faris Adli Shukery, Managing Director of JPG.
Circular economy through waste to wealth initiatives
The Roadmap comprises three pillars, the first of which focuses on developing new income streams through a circular economy under JPG’s waste-to-wealth initiatives. This will assist JPG in achieving its environmental goal of halving its Greenhouse Gas emissions by 2025 with net zero aspirations by 2050.
Among the key initiatives under this pillar is the utilisation of biogas produced from palm oil mill effluents (POME), which will not only be used to power its own mill and estate operations, but also be commercially supplied as biomethane to Gas Malaysia Green Venture Sdn Bhd (GMGV). Although all industry players are mandated to capture biogas from POME, as part of environmental impact mitigation, JPG has taken this requirement a step further by converting biogas into biomethane.
Biomethane is a cleaner and more efficient alternative to natural gas, with commercial applications that support the reduction of carbon emissions and the transition towards greater use of renewable energy. By producing biomethane, JPG complies with environmental regulations as well as contributes to a more sustainable future.
Another aspect of this pillar involves the extraction of red palm oil from the mesocarp fibre byproduct of processed fresh fruit bunches (FFB) for use as fuel. Red palm oil can be processed into biodiesel, a renewable fuel that emits fewer greenhouse gases than traditional fossil diesel fuel, making it a more environmentally-friendly option.
Downstream venture into specialty oils and fats
JPG’s second strategic pillar will explore the downstream segment of the palm oil industry. Having achieved Malaysia’s largest initial public offering (IPO) in more than two years, JPG will use the proceeds to develop its Integrated Sustainable Palm Oil Complex (ISPOC). This complex, which will be commissioned by the third quarter of 2026, will consist of a refinery that will develop specialty oils and fats, powered by renewable energy, as well as a palm oil mill, a palm kernel crushing plant, and an animal feed plant.
The refinery in particular marks a new milestone for JPG which is already well established in the market for its products that emphasise sustainability and quality, particularly low contaminants. This focus has enabled JPG to obtain higher than average Malaysian Palm Oil Board (MPOB) prices for its crude palm oil (CPO) and palm kernel (PK). The completion of the downstream refinery will allow JPG to enter the speciality oil and fats market and capture additional margins with an expanding range of product offerings.
Enhancing the upstream segment
Whilst expanding its focus areas, JPG will also continue to strengthen its production in the upstream segment through the third pillar of the roadmap. This pillar includes exploring new replanting techniques, adopting high-yielding planting material, expanding CPO production, accelerating mechanisation and automation, optimising mill processes via automation and Enterprise Resource Planning (ERP), as well as commercialisation of planting material.
“We are poised to strengthen our position as a leading force in the oil palm sector, and we are confident that these efforts will solidify our standings and drive ongoing growth for the months to come. Sustainability will remain integral to our operations due to increasing preference for responsibly-sourced palm oil – a core competency of JPG. Our aim is to harmonise economic growth with environmental care and social responsibility. Furthermore, our accelerated digitalisation and mechanisation initiatives align seamlessly with our broader transformation towards future-proofing and resilience,” he added.
Information and pictures by Johor Plantations Group Berhad
