DBS, in partnership with renewable power generator RExus Bioenergy, has announced its first green loan to finance the construction of a biomass power plant in Jurong, Singapore. The facility, set to be operational by the second half of 2026, will convert waste wood into energy and explore the integration of carbon capture technology to advance Singapore's net-zero ambitions.
DBS acted as the financial advisor and mandated lead arranger for the project's financing. The plant will process at least 100,000 tonnes of plant and wood waste annually, with a focus on materials like wooden pallets, packing materials from the logistics sector, and construction debris. This will support Singapore's waste management strategy, as the National Environment Agency reports that the country generated over 703,000 tonnes of plant and wood waste in 2023, contributing around 10% of total waste.
The facility will be equipped with advanced technology, making it 10% more energy-efficient than typical waste-to-energy plants in Singapore. Byproducts from the plant, such as ash, will be repurposed into potassium fertiliser, compost, and other agricultural products. Additionally, the facility will feature a one tonne-per-day carbon capture system, the first of its kind for a biomass plant in Singapore, to help further reduce its carbon footprint.
DBS also highlighted the project's integration with the global sustainability ecosystem. “As a purpose-driven bank, DBS believes that advancing green technologies are key to creating a more sustainable future,” said Ganesh Padmanabhan, head of project finance, Institutional Banking Group at DBS.
Once operational, the biomass plant will be certified under the International Renewable Energy Certificate (I-REC) standard, ensuring its electricity is verified as renewable. Green electricity from the plant will be used to power part of Google's data centre operations in Singapore, underscoring the facility's role in supporting major corporations' sustainability goals.
RExus Bioenergy has secured a 10-year virtual power purchase agreement (VPPA) with electricity retailer PacificLight Energy and Google to ensure the economic viability of the project. Oh Wee Khoon, chairman of RExus Bioenergy, noted the importance of the partnership and DBS's support, which “demonstrated our collective vision in contributing to Singapore's sustainable energy landscape.”
