By 2010, up to 800 tonnes of wood waste will be turned into electricity daily
Jessica Cheam, Straits Times 10 Apr 08;
SINGAPORE is getting a new power plant that will be able to service a town the size of Bishan by recycling wood waste into energy.
Home-grown Biofuel Industries yesterday announced beefed-up plans for the $55 million Jurong power plant it would develop jointly with Indonesian firm PT Medco Power Indonesia (MPI).
Biofuel had announced a smaller facility in August last year but chief executive Eugene Lee said plans expanded once MPI, a power-plant developer, entered the picture.
Construction of the 1.16ha facility will be handled by local firm Industrial Power Technology. It will start in the middle of this year and take two years to complete.
By 2010, up to 800 tonnes of wood waste - about 60 per cent of Singapore's daily output - will be collected from construction and horticultural activities and used as feedstock for the plant. The electricity will be transmitted directly to the national grid.
Biofuel currently exports its wood waste to neighbouring countries as feedstock.
The new plant signals the entry of a major Indonesian player into Singapore's energy generation market.
MPI is a unit of MedcoEnergi, which is listed on the Jakarta and Luxembourg stock exchanges. It generated revenue of US$982 million ($1.36 billion) last year.
MedcoEnergi's core business is oil and gas exploration and production, while MPI owns and operates gas-fired and geothermal power plants in Indonesia. MedcoEnergi also has operations in the United States, Libya and Oman.
MedcoEnergi president-director Fazil Alfitri said the Biofuel joint venture was a good opportunity to expand MPI's operations in the region.
'Size-wise, it's not too big, so the risk is manageable. The payback will not be in the short term, as this is a long-term investment for us,' he told The Straits Times. 'It also strengthens our position as a major green energy player.'
MPI is in negotiations with 'several lenders' over financing of the project.
The plant is expected to generate up to 135,000 carbon credits, thanks to the reduction of carbon emissions. These credits can be monetised via the United Nations' Clean Development Mechanism programme.
With current prices ranging from 8 euros ($17.40) to 12 euros, the credits could translate into about $2.3 million to $3.5 million.
Biofuel chairman Er Kwong Wah said MPI will bring its expertise and financing capability to the table. He added: 'This will help Biofuel to leapfrog into the power game.'
The new plant will be one of the largest privately owned power generators in Singapore.
A similar facility - IUT Global's 3MW plant to recycle food waste - is under construction.
