DBS Bank has issued a green loan worth “about $60 million” to Singaporean renewable power generator Rexus Bioenergy to finance the construction of a biomass power plant in Jurong. The bank declined to disclose the tenure of the loan and other specifics.
The RExus Waste Wood-to-Energy (WWtE) Plant is expected to be complete in 2H2026. Waste wood, including wooden pallets and packing materials from the logistics industry, and wooden construction materials will be the main fuel source for the 13-megawatt facility.
According to a Nov 4 announcement, the plant will process “at least 100,000 tonnes” of plant and wood waste per year at the outset.
The green electricity generated will be used to power part of Google’s data centre operations in Singapore. Rexus Bioenergy has secured a 10-year “back-to-back” virtual power purchase agreement with electricity retailer PacificLight Energy and Google.
Under this agreement, PacificLight purchases the majority of the renewable energy generated by the RExus WWtE Plant and supplies this exclusively to power part of Google’s data centre and operations in Singapore.
This tripartite collaboration contributes to the tech giant’s sustainability goals to operate on carbon-free energy by 2030.
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According to estimates by the National Environment Agency, Singapore generated over 703,000 tonnes of plant and wood waste in 2023, approximately 10% of the total waste generation.
With this in mind, the facility will incorporate a circular economy approach to reduce waste and pollution. As part of a circular economy design, by-products like ash will be repurposed into potassium fertiliser, compost and other agricultural materials.
According to Rexus Bioenergy, “advanced technology and more energy-efficient processes” will also boost the operational efficiency of the facility by 10% compared to typical waste-to-energy plants in Singapore.
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In addition, the facility will be the first biomass plant in Singapore to be equipped with a one tonne-per-day carbon capture system, which could help the plant further reduce its carbon footprint.
Upon completion, the facility will be certified under the International Renewable Energy Certificate (I-REC) standard, a globally recognised system for tracking and certifying renewable energy sources.
As financial adviser, DBS says it provided an “end-to-end service” to Rexus Bioenergy, and advised them on project finance structuring, due diligence and modelling workstreams. “The development is also one of the first biomass plants in Singapore to be owned and operated by a small and medium-sized enterprise for energy sale,” says DBS.
Oh Wee Khoon, chairman of Rexus Bioenergy and founder of the Sobono Group of companies, says: “The collaboration between the two joint venture partners of Rexus Bioenergy — Sobono Bioenergy and V8 Environmental — was instrumental through the ‘match-making’ by Enterprise Singapore. Both came from humble beginnings and complemented each other with their experience, strength and industrial knowledge.”
Oh adds: “The circular approach of this RExus WWtE Plant challenges the status quo and I am glad that we have received sound support from industry participants and governmental agencies alike, including investment by PacificLight Power in Sobono Bioenergy and JTC’s lease assignment. DBS’s commitment to this green project finance was a confidence booster and demonstrated our collective vision in contributing to Singapore’s sustainable energy landscape.”
PacificLight Energy was incorporated in 2002 and is a licensed electricity retailer in Singapore. The company sells electricity to businesses and residential customers in Singapore. Its parent entity, PacificLight Power, is also a minority shareholder of Sobono Bioenergy.
Shares in DBS closed 31 cents higher, or 0.8% up, at $39.06 on Nov 4.
