Zero Emission: Renewable Energy

As an initiative to reduce our Scope 2 emissions and contribute to the Group’s efforts to achieve carbon net-zero emissions, since 2021, SD Guthrie has been installing solar PV systems on rooftops of regional offices and buildings. Besides that, SD Guthrie RE has also started implementing off-grid solar systems equipped with Battery Energy Storage Systems (BESS) to power our assets.

In 2023, we successfully commissioned an off-grid solar plant with a capacity of 25.92 kWp and 77 kWh BESS at our fertigation system in Sungai Buloh Estate, Selangor. In the same year, SD Guthrie RE successfully secured a 15MW quota for the development of SD Guthrie’s first ever large-scale solar plant in Bukit Selarong, Kedah, in Northern Peninsular Malaysia, under the Corporate Green Power Programme (CGPP). The plant is targeted to be completed in 2025. To achieve our 1 GW solar capacity ambition, SD Guthrie is actively exploring new solar projects via greenfield and brownfield developments.

In East Malaysia, we also completed off-grid solar projects in multiple areas in Jelata Bumi Estate, Sabah, with a total of 859 kWp solar plants and 1,482 kWh BESS in May 2024.

Aligning Renewable Energy Initiatives Strategy to the Malaysian National Agenda
The Malaysian government aims for RE to constitute 40% of the primary energy supply mix by 2035 and 70% by 2050. Achieving this goal necessitates a significant expansion of RE capacity nationwide, reinforced by the National Energy Transition Roadmap (NETR) launched in August 2023. NETR outlines the ambition to achieve a 70% RE share of installed capacity by 2050, predominantly driven by solar photovoltaic (PV) installations. Significant solar capacity growth is required over the next three decades, with a target of 59 GW of installed capacity by 2050.

In line with the NETR agenda, SD Guthrie proactively strategises renewable energy initiatives, ensuring that all development plans align with the latest national directives. Our primary goal is to reduce the Group's carbon emissions and fulfil our net-zero commitments while exploring opportunities to generate additional revenue streams through renewable energy projects.

Note: All Rooftop and offgrid solar listed are under a mixture of SD Guthrie’s own development and Build, Own, Operate and Transfer (BOOT) model.

Aside from our own developments, we also contributed to the national energy transition programme by leasing lands for the development of solar farms under various schemes by the Energy Commission.

1. Large Scale Solar (LSS) 1: Solar plant with a capacity of 20 MW, was installed in SD Guthrie’s Tali Ayer Estate in Penang and commenced operations in 2018.
2. LSS 4: As of the end of FY2024, there are 12 LSS4 projects under land lease model on our land assets, with a total combined capacity of 336 MW. 11 of these plants have been completed, and the remaining plant is expected to be fully commissioned by Q2 FY2025.
3. CGPP: The development of 12 CGPP sites on SD Guthrie's land assets (11 land lease + 1 SDG owned), with a combined capacity of 277 MW, is currently in progress.

Methane emissions, a high-impact GHG, are the largest source of emissions in SD Guthrie’s operations. These emissions are primarily generated during the treatment of Palm Oil Mill Effluent (POME)—a byproduct of mill processes—through conventional anaerobic and aerobic ponding systems before being discharged in compliance with Environment Department (DOE) regulations.

SD Guthrie's biogas plants play a vital role in ensuring that we remain on track towards achieving our carbon reduction target. Our biogas plants capture methane emitted from anaerobic wastewater treatment ponds that would otherwise be released into the atmosphere. 

Progress of our Biogas Plants initiative:
We aim to have a total of 46 biogas plants across our operations by 2030.

In FY2024, we commissioned three new biogas plants at Pagoh Mill (Johor), Sg. Dingin Mill (Kedah), and Kok Foh Mill (Negeri Sembilan). This brings the total number of biogas plants in operation to 19, spread across three countries: 15 in Malaysia, 2 in Indonesia, and 2 in Papua New Guinea (PNG). These plants collectively have a total capacity of 28.95 MWe.

In 2024, we also commenced construction of the Sangara biogas plant in PNG.

SD Guthrie is piloting a new initiative to capture carbon emissions from boiler flue gas operations using innovative microalgae technology. This natural solution is potentially effective in sustainable carbon sequestration.

Microalgae may be efficient at absorbing CO₂, and offer dual benefits: reducing GHG emissions and generating valuable biomass. This biomass can be converted into high-value products like biofuels, bioplastics, and nutritional supplements, creating new revenue streams and enhancing sustainability.