The plant is the fourth biogas plant that will have the capacity to supply clean electricity from renewable sources.
Energy, Green Technology and Water Minister Datuk Seri Panglima Dr Maximus Johnity Ongkili said FPI Biogas Power Plant was one of the first facilities to be fully operational in Sabah.
In operation since 2012, the power plant, which has a biogas digester lagoon, is able to generate 1,000 cubic metres of biogas per hour, supplying electricity to 3,000 households in the Felda Umas area, which has approximately 15,000 people.
He said power generation projects from renewable sources (biogas) in palm oil mills could be a benchmark for the industry.
"Renewable sources (Tenaga Boleh Baharu - TBB) from the waste of manufacturing activity to generate electricity could complement existing fuel mix while reducing greenhouse gas emissions," he said when opening the plant at Umas Palm Oil Mill, near here, Tuesday.
Also present were FGV Group President and Chief Executive Officer Mohd Emir Mavani Abdullah and Sustainable Energy Development Authority (Seda) Chairman Datuk Dr Yee Moh Chai.
Mohd Emir, in his speech, said to date, FGV has 11 biogas plants that are operating and 11 more projects are under construction.
"The launch of the power plant is a demonstration of our commitment to reduce our carbon footprint as a plant of this nature plays a crucial role in converting biogas which can be used by our facility and extended to the local community.
"We trust this project will contribute significantly to the wellbeing of the community and help to minimise constant power cuts that residents of Felda Umas had experienced before.
"In the long term, generating renewable energy will be the best alternative source for electricity as well as lessen our dependency on fossil fuel," he added.
Mohd Emir said, with the recent announcement of FiT for the sale of electricity from biogas, FPI received a FiT quota of 9.2 megawatt in 2014, 7.2 megawatt in 2015 and 5.6 megawatt in 2016.