IHI Launches Project to Digitally Track Malaysian Plant Emissions and Facility Operating Rates to Shrink Supply Chain Eco Footprint
IHI announces today that it has launched a verification project to digitally track carbon dioxide emissions and facility operating rates at a plant in Malaysia that manufactures fuel pellets from Empty Fruit Bunch (EFB) palm biomass. This initiative will run through January 2025.
The company is undertaking this project for the Japan-ASEAN DX Promotion Program, which the Japan External Trade Organization (JETRO) is supporting in collaboration with companies and institutions across Southeast Asia to resolve socioeconomic issues with digital technology.
Most EFB, by-products from palm oil mills are simply discarded at palm plantations. As it decays, this material contaminates the soil and produces methane, a greenhouse gas (GHG). Southeast Asia, Japan, and the rest of the world must urgently address these issues. It was against that backdrop that IHI established IHI SOLID BIOMASS MALAYSIA SDN. BHD. in Malaysia in 2018 to make fuel pellets from EFB that it sources from Dominion Square Sdn Bhd, a crude palm oil producer, and cut emissions. The latter company is a subsidiary of LKKP Corporation Sdn Bhd, a government link company under Pahang State Agricultural Development Corporation.
IHI’s project will help to further reduce GHG emissions by analyzing plant operations to enhance facility utilization rates and productivity. After the project ends, IHI aims to have Dominion Square apply its technology to cut carbon dioxide emissions from palm oil production. IHI’s endeavor represents a major step forward for environmental improvements in Malaysia.
IHI will deploy technologies and expertise from the project at plants around Southeast Asia and supply solutions matching customer needs, thus helping to decarbonize its entire supply chain by 2050.
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