Sembcorp opens S$34m 'energy from waste' plant

The Jakarta Post, Yunita Ong, Asia News Network/The Straits Times, Singapore, 04/25/2012

Sembcorp opened on Tuesday a S$34 million (US$27.29 million) plant in Sakra district on Jurong Island that will turn waste into energy.

The facility will process woodchips from the firm's solid waste management arm to output 20 ton of process steam an hour for use by other industries nearby, including multinational agribusiness Tate & Lyle.

The wood - gleaned from industrial, commercial, construction and demolition waste - would otherwise be incinerated.

The steam-producing process also cuts costs. Sembcorp has relied on natural gas from Indonesia to fuel its plants since 2001 but using woodchips instead would be 'significantly' less expensive, although the firm did not disclose the savings.

Ng Meng Poh, its executive vice-president for Singapore and ASEAN (Utilities), said Tuesday: “This solution provides an alternative economical source of energy for our customers on Jurong Island while leveraging synergies between our solid waste management and energy business.

“'It is also a step forward in our strategy to grow our portfolio of renewable energy assets and to offer sustainable and competitive energy-from-waste solutions to our customers on (Jurong Island).”

A range of other green facilities was also announced at Tuesday's opening ceremony.

Sembcorp will develop a second boiler at the plant to pump out 40 ton per hour of process steam. It will be completed later next year.

The two boilers, which will cost $64 million in total, will reduce carbon dioxide emissions by an estimated 70,000 ton a year compared with the typical Singapore steam-generating plant, which uses a mix of natural gas and other fuels.

Sembcorp also intends to supply its Sakra customers with one third of their steam demands using alternative fuel.

It aims to build two energy-from-waste boilers in Sakra to produce 140 ton of steam an hour by 2014. Its solid waste collection arm will provide the plant fuel.

In 2007, Sembcorp started burning woodchips, recycled wood and willows to fuel its $187 million power and steam station in Teeside in Britain.