According to estimates by the National Environment Agency, Singapore generated over 703,000 tons [1] of plant and wood waste in 2023, approximately 10% of the total waste generation – with volumes expected to rise as the nation’s tree population continues to grow. Scaling up solutions to better address plant and wood waste will help to reduce the burden on the country’s landfills and contribute towards a more sustainable future. With this in mind, the facility will incorporate a circular economy approach to reduce waste and pollution.
Waste wood–including wooden pallets and packing materials from the logistics industry, or wooden construction materials amongst others – will be the main fuel source for the 13-megawatt facility. The plant will process at least 100,000 tons of plant and wood waste per year at the outset.
As part of a circular economy design, byproducts like ash will be repurposed into potassium fertilizer, compost and other useful agricultural materials. Advanced technology and more energy-efficient processes will also boost the operational efficiency of the facility by 10% compared to typical waste-to-energy plants in Singapore.
In addition, the facility will be the first biomass plant in Singapore to be equipped with a one ton-per-day carbon capture system, which could help the plant further reduce its carbon footprint.
Upon completion, the facility will be certified under the International Renewable Energy Certificate (I-REC) standard – a globally recognized system for tracking and certifying renewable energy sources. Green electricity generated will be used to power part of Google’s data center operations in Singapore.
To ensure the long-term economic viability of the facility, Rexus Bioenergy has secured a 10-year back-to-back virtual power purchase agreement with electricity retailer PacificLight Energy and Google.
Ganesh Padmanabhan, Head of Project Finance, Institutional Banking Group, DBS, said, “As a purpose-driven bank, DBS believes that advancing green technologies are key elements to create a more sustainable future. DBS structured a bespoke project financing for Rexus Bioenergy’s biomass-based power plant backed by a corporate offtake in Singapore.
“The project will also play a critical role in recycling wood waste, exploring carbon capture technologies and also generate usable by-products for other industries. We are pleased to be supporting the nation's transition to cleaner energy sources and the broader sustainability ecosystem by offering tailored green financing solutions to our clients.”
As Financial Advisor, DBS provided an end-to-end service to Rexus Bioenergy, and advised them on project finance structuring, due diligence and modelling workstreams. The development is also one of the first biomass plants in Singapore to be owned and operated by a small and medium-sized enterprise for energy sale.
[1] See: https://www.nea.gov.sg/our-services/waste-management/waste-statistics-and-overall-recycling
