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Biofuel Industries set to be first to sell green power to grid

By Jeana Wong, Channel NewsAsia
16 August 2007

SINGAPORE: Environmental technology firm Biofuel Industries is set to build the first biomass cogeneration plant that will sell its power to the national grid.

The S$30-million plant, to be located in Tuas, will produce 9.9 megawatts of electricity.

Although its generation capacity is relatively small, the company says it is part of its plan to create an integrated recycling business in Singapore.

Biofuel Industries has hired Industrial Power Technologies to build and run the cogeneration plant under a memorandum of understanding signed on Thursday.

By turning wood waste into fuel chips, the plant is expected to halve electricity production costs.

The company says it earns revenue from collecting the waste, exporting the recycled fuel chips and eventually selling the power to the grid.

It is now drawing up plans for the Tuas plant and construction is expected to begin by the end of the year.

"We also have two other projects that are being planned and in process. They are progressing very well. That would further add to the whole integrated recycling business," said Er Kwong Wah, chairman of Biofuel Industries.

"We're producing 1,000 to 1,500 tonnes of waste wood every day, including horticultural waste. This waste must go somewhere... The end goal is to have a perpetual business that will get rid of all the waste and at the same time, doing it in such a way that it makes business sense," he continues. - CNA/ac

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