Sembcorp Industries opened its first biomass steam production plant on Tuesday.
The company said it would use waste wood, as well as industrial and commercial waste, to produce steam for industries on Jurong Island.
Sembcorp’s solid waste collection business has been sending its wood waste to fuel this S$34 million woodchip steam production plant.
The company plans to add a second boiler, which will up the plant’s capacity to 60 tonnes of steam per hour in the second half of 2013.
Plans are also in the pipeline to build two new boilers — this time using industrial and commercial waste instead of woodchips.
These two boilers will add a further 140 tonnes of steam per hour.
Sembcorp has set a target to supply one-third of its Sakra District customers’ steam demand using alternative fuels by 2014.
The cost savings derived from the use of alternative fuels will then be passed on to their customers, who use the steam for heating purposes in their facilities.
The plant also has the space for steam condensing turbines to produce electricity.
“The first priority is to produce the steam for our customers in Jurong Island, to help them to become more competitive,” Sembcorp Industries group president and CEO Tang Kin Fei said.
“If there is a reduction, or drop in the demand from our steam customers, then we can make use of the steam to produce power. But this will be our fallback position. “
Sembcorp said similar investments normally yield 12 per cent returns annually.
Even before the official opening on Tuesday, its woodchip boiler plant has been profitable since operations started late last year.
Environmental benefits could also be reaped, with carbon dioxide emissions reduced.
Sembcorp estimates both boilers to reduce carbon emissions by 70,000 tonnes annually.
