Singapore company turning waste into green energy

Business Times 5 May 09;

Alpha Biofuels collects liquid waste, including used vegetable oil from restaurants and homes, and converts it into bio-diesel to power vehicles, reports BRITTANY KHOO

A wish for a greener world through sustainable energy prompted Allan Lim, chief executive officer of Alpha Biofuels, to find a viable way to produce energy from community waste.

Liquid waste - such as used vegetable oil from restaurants and homes - can be converted into bio-diesel through Alpha's technology and used to power vehicles.

Alpha was set up in 2004 as a spin-off from parent company Alpha Synovate, to look into producing greener alternatives to traditional fuels.

Mr Lim wants to convince the community of the need to temper climate change by using more sustainable fuel such as bio-diesel. He runs operations at a Tanjong Penjuru plant with a staff of 12, seven of whom are local university interns.

'A difficult game'

But things have not been easy for Alpha. Its five years of existence have been fraught with challenges and difficulties. For a start, it had pioneered its technology at 'micro' scale, whereas current equipment to make bio-diesel is roughly the size of a Jurong refinery. Additionally, Alpha faced a big challenge breaking into an industry dominated by giants such as Shell and ExxonMobil.

'It was, and still is, a difficult game for a small start-up with no logistics or infrastructure,' says Mr Lim.

Fortunately, Alpha received grants from Spring Singapore, as well as a two-year incubation stint at ITE College East, where it had access to laboratory facilities and technical support to conduct research and development.

The result, according to Mr Lim, is a less energy-intensive, lower-cost process that beats the industry standard and allows Alpha to bring bio-diesel to local markets at a lower price. And having developed its own in-house technology gives the company full control over all aspects of production.

Multiple benefits

The process enables the conversion of typically hard-to-work-with feedstock, such as sewer grease and algae, into liquid fuel, with environmental and economic benefits.

Today, Mr Lim's company collects waste oil from various places in Singapore for treatment at the plant. Through trans-esterification, demethylation, purification and filtration, a series of biochemical steps are taken to obtain bio-diesel that can be used in standard diesel engines.

The bio-diesel is used to power the fleets of restaurants, logistics companies, manufacturers - and even a growing number of individuals, who buy the amount they need directly from Alpha at its six retail locations around Singapore. Besides bio-diesel, Alpha is researching conversion processes for other bio-fuels such as bio-ethanol.

'I believe very much in changing perceptions,' Mr Lim says of Alpha's aim. 'We are concentrating on recycling the community's waste, enforcing a tight circle of sustainability in society.'

Through a combination of educational workshops, plant visits and community outreach sessions, Alpha hopes it can slowly change Singaporeans' attitude towards sustainable energy. In terms of customer feedback, its product has won positive reviews, particularly from corporate fleets that benefit from a reduced carbon footprint.

Backed by these achievements, Alpha is unfazed by the economic downturn. It is not profitable yet, but believes it will survive the recession because its selling point - sustainable energy - will boost demand for competitively priced bio-diesel.

Alpha's bio-diesel was retailing at $1 a litre last night - about 15 per cent lower than the market average. Mr Lim says the company sells the 'cheapest bio-diesel anywhere in Asia' because of the innovative technology and feedstock it uses.

While still in the high-growth stage, Alpha is 'very careful' about spending.

'We go as lean as we can, with as few liabilities as possible,' says Mr Lim. 'The key to what we are doing is to maintain a healthy cash flow.'