FGV expands B100 biodiesel pilot to plantation operations

Photo: FGV Holdings Berhad

FGV Holdings Berhad announced July 7 that it has launched the next phase of its 100 percent biodiesel (B100) pilot program, expanding the trial from vehicle applications to plantation operations to evaluate the technical performance and operational viability of locally produced palm oil-based biodiesel under real-world operating environments.

The six-month pilot will be carried out at the Tun Abdul Razak Agricultural Research Centre (PPPTAR) estate in Jerantut, Malaysia, involving approximately 17 units of machinery including tractors, agricultural machineries, power generators and four-wheel-drive vehicles used in daily plantation operations.

The initiative builds on FGV’s earlier evaluation of B100 in on-road vehicles and marks the next phase of testing in plantation operations, where operating conditions are significantly more demanding.   

Produced using 100 percent locally sourced palm oil with no fossil-fuel content, B100 is part of FGV’s ongoing efforts to broaden the range of its downstream palm-based applications.

As a producer of palm-based biodiesel and one of Malaysia’s largest agribusiness companies, FGV said it is adopting a data-driven approach to assess the viability of B100 in real-world operations before any consideration is given to wider implementation.

The pilot will be implemented in phases, with individual assets monitored through a comprehensive technical assessment covering fuel consumption, engine performance, operational reliability, maintenance requirements and fuel quality.

Participating assets will also undergo inspections and servicing prior to the start of the trial to establish baseline-performance benchmarks for reference throughout the evaluation period.

Plantation operations were selected for the trial due to their demanding operating environment, where machinery is subjected to extended operating hours, varied plantation terrain, high operational temperatures and differing workload demands across asset types.

The assessment will enable FGV to gather more comprehensive real-world operational data, contributing to the industry’s knowledge and understanding of palm oil-based biodiesel applications within the plantation sector.

FGV Chairman Datuk Abu Huraira said the expansion of the B100 assessment to plantation operations reflects FGV’s commitment to unlocking new opportunities for palm oil through innovation that is both responsible and evidence-based.

“Malaysia is uniquely positioned as one of the world’s leading palm-oil producers,” he said. “Amid an increasingly challenging global landscape, marked by supply-chain uncertainties and volatility in energy markets, our strategic commodity holds significant potential to further support the nation’s renewable energy agenda while enhancing the competitiveness of the palm-oil industry. The government’s decision to increase the national biodiesel blend to B20 reflects Malaysia’s commitment to strengthen our adoption for renewable energy based on local resources. FGV welcomes this initiative and will continue to play its role through responsible operational evaluations that support the sustainable growth of Malaysia’s biofuel industry.”

This initiative goes beyond assessing the viability of B100, he added.

“It also reflects FGV’s commitment to creating greater value from palm oil through innovation that supports industry development, strengthens the Federal Land Development Authority (FELDA) ecosystem and delivers meaningful benefits to the settler community,” he said.

FGV said the launch of this initiative in conjunction with Hari Peneroka FELDA 2026—the 70th anniversary celebration of FELDA held in early July, which honors settlers’ sacrifices and hard work as part of the government’s poverty-eradication program—reflects its commitment to strengthening the palm-oil value chain in partnership with the settler community.

Fresh fruit bunches supplied by FELDA settlers serve as the foundation for the development of a wide range of high-value palm-based products and solutions, including B100, FGV stated.

As a company rooted in the FELDA ecosystem, FGV said it continues to support strengthening the nation’s palm-oil value chain through food products, consumer goods, oleochemicals and biofuels.

“Initiatives such as the B100 pilot demonstrate the company’s commitment to unlocking new opportunities for palm oil through research, innovation and technological development that support industry advancement, ensuring the sector remains relevant, competitive and sustainable,” FGV said.