DBS, in collaboration with RExus Bioenergy, has announced the granting of the first loan for a biomass plant in Jurong, Singapore. This project promises to be a crucial step towards sustainability by using advanced technology and a circular economy design.
Biomass plant loan will boost clean energy
The plant, expected to be operational in the second half of 2026, will convert wood waste into clean energy and explore carbon capture to support Singapore’s net-zero emissions goals. DBS, acting as financial advisor, structured a customised financing scheme, highlighting the bank’s commitment to green solutions.
According to the National Environment Agency, Singapore generated more than 703,000 tonnes of wood waste in 2023. Transforming this waste into energy will reduce pressure on landfills and contribute to a more sustainable future. The 13-megawatt facility will process at least 100,000 tonnes of plant material annually from inception, using waste from the logistics and construction industry as the primary fuel.
Circular model and carbon capture
In addition to producing clean energy, the biomass plant will be a pioneer in the reuse of by-products. The ashes generated will be converted into fertilizers and compost, promoting an efficient reuse cycle. The implementation of a carbon capture system of one tonne per day will mark a step forward in reducing emissions for this type of facility.
The renewable energy generated will power Google’s data center operations in Singapore, strengthening the collaboration between the technology giant and RExus Bioenergy. A long-term power purchase agreement with PacificLight Energy and Google ensures the economic viability of the project.
This plant will play a vital role in recycling waste and developing green technologies, aligning with our mission to drive sustainability in Singapore.
Commented Ganesh Padmanabhan, head of project finance at DBS.
Oh Wee Khoon, Chairman of RExus Bioenergy, underlined the importance of collaboration between partners and the institutional support they have received. “ Our circular approach challenges the status quo, and the strong support from industry and government reflects the commitment towards a cleaner energy landscape ,” he said.
With guaranteed I-REC certification , this biomass plant is positioned as a model for future sustainable energy initiatives.
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Source: RExus Bioenergy
Photo: Shutterstock
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