DBS green loan powers wider adoption of biofuels to enable a circular economy and help accelerate Singapore's net-zero ambitions
Singapore.04 Nov 2024
Project financing will enable the construction of Singapore’s first circular biomass power plant, which will also explore the potential of carbon capture technologies
Energy generated will power part of Google’s data center operations in Singapore under a 10-year supply contract
Wider adoption of renewable biofuels can help to diversify Singapore’s fuel resources and drive the transition to a low-carbon economy
Singapore, 04 Nov 2024 - DBS, in partnership with homegrown renewable power generator Rexus Bioenergy, today announced the company's first green loan to finance the construction of a biomass power plant in Jurong. Upon completion in 2H2026, 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[1]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[2]. 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. With this in mind, the facility will incorporate a circular economy approach to reduce waste and pollution.
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 center 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[3]with electricity retailer PacificLight Energy[4]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.”
As Financial Advisor, DBS 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.
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.”
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 16 consecutive years from 2009 to 2024.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
About Rexus Bioenergy
Rexus Bioenergy is a Singapore-based renewable power generation company formed through a joint venture (JV) between Sobono Bioenergy of Sobono Group and V8 Environmental, to invest in, develop and operate the RExus WWtE Plant.
This collaboration was built upon the collective vision of bioresource valorisation that amplifies the combined attributes of both JV partners – V8 Environmental, a waste management company with decades of experience in recycling and processing various waste materials; and Sobono Group, a clean energy solutions provider and circular economy proponent which has expertise in designing, constructing and operating renewable waste-to-energy plants.
On project completion, Rexus Bioenergy will have oversight of the entire supply chain – from sourcing wood waste to generating of more than 90,000 MWhe of power and 90,000 I-REC annually. For more information, please visit www.sobono.com.sg.
According to estimates by the National Environment Agency, Singapore generated over 703,000 tonnes[1]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[2]. 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. With this in mind, the facility will incorporate a circular economy approach to reduce waste and pollution.
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 center 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[3]with electricity retailer PacificLight Energy[4]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.”
As Financial Advisor, DBS 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.
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.”
[1] See: https://www.nea.gov.sg/our-services/waste-management/waste-statistics-and-overall-recycling
[2] Singapore’s One Million Trees movement aiming to increase the tree population from 7 million to over 8 million in the next decade; see: https://www.nparks.gov.sg/treessg/one-million-trees-movement/about-the-movement
[3] Under this agreement, PacificLight purchases majority of the renewable energy generated by the RExus WWtE Plant and supplies this exclusively to power part of Google’s data center and operations in Singapore. This tripartite collaboration contributes to the tech giant’s sustainability goals to operate on 24/7 carbon-free energy by 2030.
[4] PacificLight Energy Pte Ltd was incorporated in 2002 and is a licensed electricity retailer in the National Energy Market of Singapore and sells electricity to businesses and residential customers in Singapore. Its parent entity, PacificLight Power, is also a minority shareholder of Sobono Bioenergy.
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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 16 consecutive years from 2009 to 2024.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
About Rexus Bioenergy
Rexus Bioenergy is a Singapore-based renewable power generation company formed through a joint venture (JV) between Sobono Bioenergy of Sobono Group and V8 Environmental, to invest in, develop and operate the RExus WWtE Plant.
This collaboration was built upon the collective vision of bioresource valorisation that amplifies the combined attributes of both JV partners – V8 Environmental, a waste management company with decades of experience in recycling and processing various waste materials; and Sobono Group, a clean energy solutions provider and circular economy proponent which has expertise in designing, constructing and operating renewable waste-to-energy plants.
On project completion, Rexus Bioenergy will have oversight of the entire supply chain – from sourcing wood waste to generating of more than 90,000 MWhe of power and 90,000 I-REC annually. For more information, please visit www.sobono.com.sg.
