DBS, in partnership with renewable power generator RExus Bioenergy, has announced the company's first green loan to finance the construction of a biomass power plant in Jurong, Singapore.
Upon completion in the second half of 2026, the RExus waste wood-to-energy plant will also explore the potential of carbon capture technology in advancing Singapore's net-zero ambitions.
DBS acted as the financial advisor and mandated lead arranger for the project financing.
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 volumes expected to rise as the nation’s tree population continues to grow.
Scaling up solutions to better address plant and wood waste will help to reduce the burden on the country’s landfills and contribute towards a more sustainable future, according to DBS.
Waste wood – including wooden pallets and packing materials from the logistics industry, or wooden construction materials amongst others – will be the main fuel source for the 13-megawatt facility.
The plant will process at least 100,000 tonnes of plant and wood waste per year at the outset.
As part of a circular economy design, byproducts like ash will be repurposed into potassium fertiliser, compost and other useful agricultural materials.
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.
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.
Green electricity generated will be used to power part of Google’s data centre operations in Singapore.
To ensure the long-term economic viability of the facility, RExus Bioenergy has secured a 10-year back-to-back virtual power purchase agreement with electricity retailer PacificLight Energy and Google.
Ganesh Padmanabhan, head of project finance, Institutional Banking Group, DBS, said: “As a purpose-driven bank, DBS believes that advancing green technologies are key elements to create a more sustainable future. DBS structured a bespoke project financing for RExus Bioenergy’s biomass-based power plant backed by a corporate offtake in Singapore.
"The project will also play a critical role in recycling wood waste, exploring carbon capture technologies and also generate usable by-products for other industries. We are pleased to be supporting the nation's transition to cleaner energy sources and the broader sustainability ecosystem by offering tailored green financing solutions to our clients.”
Oh Wee Khoon, chairman of RExus Bioenergy and founder of Sobono Group of companies, said: “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.
"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’ commitment to this green project finance was a confidence booster and demonstrated our collective vision in contributing to Singapore’s sustainable energy landscape.”
RExus Bioenergy receives loan for Google-powering biomass plant
