IOI Corporation Berhad (IOI)’s plantation business signed a long-term service agreement (LTSA) with UMW Group’s wholly owned subsidiary, UMW Industrial Power Services Sdn Bhd (UIPS) on 6 December 2023 for the maintenance of seven Jenbacher biogas engines installed at our seven palm oil mills in Lahad Datu and Sandakan, Sabah for a duration of 16 years.
The seven Jenbacher biogas engines have a total power generation capacity of 5,523kW. The power generated will be utilised for the operations at our palm oil mills, living quarters as well as for auxiliary usage. IOI’s strategic LTSA with UIPS will ensure the optimal performance and longevity of our biogas engines as we progressively move forward to achieve our net zero greenhouse gas emissions for Scope 1, 2 and 3 by 2040.
The LTSA will cover maintenance services and engine block replacement. The scheduled maintenance is aimed at achieving an optimum capacity of 7,000 operating hours annually and providing a remarkable power conversion rate of up to 48.7% to maximise resource efficiency for our operating units, while reducing our CO2 emissions and carbon footprint.
The signing ceremony was held in Sandakan, Sabah. Seven LTSAs were signed with Ladang Sabah Mill, Pamol Sabah Mill, Mayvin Mill, Morisem Mill, Leepang Mill, Syarimo Mill and Unico Desa Mill, respectively and collectively under our wholly-owned IOI Plantation Services Sdn Bhd, which currently operates 10 mills in Sabah.