DBS, in collaboration with homegrown renewable energy company Rexus Bioenergy, has announced the provision of its first green loan to finance the construction of a biomass power plant in Jurong. Once completed in the second half of 2026, the RExus Waste Wood-to-Energy Plant will not only address Singapore’s waste management needs but also explore the integration of carbon capture technology to support the nation’s net-zero goals. DBS is serving as the Financial Advisor and Mandated Lead Arranger for the project financing, as per the press release.

According to the National Environment Agency, Singapore generated more than 703,000 tonnes of plant and wood waste in 2023, which accounted for around 10% of the country’s total waste. This figure is expected to increase as the nation’s tree population grows. Addressing this growing waste stream is crucial for reducing landfill pressure and fostering a more sustainable future. The RExus facility will adopt a circular economy approach to reduce waste and pollution.

The plant, which will have a capacity of 13 megawatts, will primarily use waste wood—such as discarded wooden pallets, packing materials, and construction wood—as fuel. Initially, the plant is expected to process at least 100,000 tonnes of wood and plant waste annually.

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In line with its circular economy model, the facility will repurpose byproducts like ash into useful materials, including potassium fertilizer and compost for agricultural use. The plant will also feature advanced technology and more energy-efficient processes, enhancing operational efficiency by 10% compared to typical waste-to-energy plants in Singapore.

Notably, the RExus plant will be the first biomass facility in Singapore to incorporate a carbon capture system, capable of capturing one tonne of CO2 per day, further reducing its environmental impact. Upon completion, the facility will be certified under the International Renewable Energy Certificate (I-REC) standard, a globally recognized certification for renewable energy sources. The green electricity generated will be used to power part of Google’s data center operations in Singapore.

According to the press release, to ensure the long-term financial sustainability of the project, Rexus Bioenergy has secured a 10-year virtual power purchase agreement (VPPA) with PacificLight Energy and Google. This agreement guarantees the purchase of the plant’s output over a decade, providing economic stability for the facility.

Ganesh Padmanabhan, Head of Project Finance at DBS, commented: “At DBS, we believe that advancing green technologies is critical to creating a more sustainable future. We are proud to have structured a bespoke financing solution for Rexus Bioenergy’s biomass power plant, which will play an important role in recycling wood waste, exploring carbon capture, and generating valuable by-products for other industries. By offering tailored green financing, we are supporting Singapore’s transition to cleaner energy sources and contributing to the broader sustainability ecosystem.”

As the Financial Advisor, DBS provided end-to-end services to Rexus Bioenergy, including project finance structuring, due diligence, and financial modeling. The facility will also be one of the first biomass plants in Singapore to be operated by a small-to-medium-sized enterprise for energy sale.

Oh Wee Khoon, Chairman of Rexus Bioenergy and founder of Sobono Group, stated: “The successful collaboration between Sobono Bioenergy and V8 Environmental, facilitated by Enterprise Singapore, has been crucial in bringing this project to life. Our combined experience and industrial knowledge have made this circular approach to biomass energy a reality. We are grateful for the strong support from industry partners and government agencies, including PacificLight Power’s investment in Sobono Bioenergy and JTC’s lease assignment. DBS’ commitment to financing this green initiative has been a significant confidence booster, and we are excited to contribute to Singapore’s sustainable energy future.”

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