Singapore-based Tuas Power has revealed plans to fully overhaul its 133MW coal-fired power plant and operate solely on biomass fuel sources by the end of 2028. This new development marks a marked changeover in the country’s energy mix since the firm currently operates under a 70:30 coal-and-biomass fuels mix at the company’s Tembusu Multi-utilities complex. This development will see the firm end its dependency on coal fuel sources.
Biomass fuel sourcing strategy focuses on local vendors
In the case of Tuas Power, the strategy involves the sourcing of different biomass materials from different sources across Southern Asia. In fact, Tuas Power has been gradually increasing the usage of wood pellets imported from abroad, as well as palm kernel shell materials, in addition to the usage of wood chips.
The firm is actively negotiating with consumers to increase the number of offtake contracts to ensure the viability of the conversion process. Industry sources say that Tuas Power has approached several trading houses as well as palm kernel shell vendors for long-term shipment contracts. This assumes importance to ensure a smooth flow of fuel when the entire coal-based business ceases.
Tuas Power highlights the importance of extending its customer schemes to remain economically sustainable during its transition to biomass. This approach to commercial sustainability at Tuas Power enables the biomass conversion scheme to go ahead without affecting the efficiency of their operation or the cost of electricity for customers in Singapore.
Hidden procurement targets reveal massive biomass requirements
Tuas Power intends to purchase more than 1 million tons per annum of imported palm kernel shells from countries in the Southeast Asian region. In addition, 300,000 tons per annum of local wood waste contributed by the horticulture activities in the country of Singapore will also be purchased. The new plant will consume more than 1.3 million tons per annum of biomass materials to produce 135 megawatts of electricity.
Important procurement goals:
- Imported palm kernel shells: 1+ million tonnes per year
- Domestic wood waste: 300,000 tons per annum
- Total biomass consumption: 1.3+ million tonnes
- Power generation capacity: 135 megawatts
- Timeline: 2027-28
These purchasing requirements are a marked increase in the regional biomass demand and can create market instability. The conversion startup plan targets the start of the business in 2027-28. This gives the companies sufficient time to increase their biomass production output. This large biomass requirement makes Tuas Power a significant player in the market of renewables in Southeast Asia.
Positioning strategy improves Singapore’s output of renewable energy
The biomass conversion at Tuas Power shows how the company is aligning with the plans to increase the usage of renewable energy sources in Singapore. The company at present satisfies 20% of Singapore’s total electricity requirements based on the 2,670 megawatt total generating capacity. In addition to electricity generation, the company offers steam, high-grade industrial water, and wastewater services.
“The company has been in active dialogue with more consumers to develop additional offtake arrangements and ensure that the process remains economically viable,” said Tuas Power in their announcement related to their transition to biomass.
The timeline of transition helps in planning to meet the requirements for the total biomass process. The transition carried out at Tuas Power by Huaneng Power International, a Chinese conglomerate-owned company, ranks among the largest in the region of South East Asia, from coal to biomass. Established power companies can easily transition to the use of alternatives that produce less.
The biomass conversion of Tuas Power in Singapore is a historic milestone in the energy landscape of the Southeast Asian region. This success story could set the tone for other energy transitions in the region since countries are set to enforce more drastic targets for the reduction of carbon. This biomass conversion will greatly influence the regional markets for renewable fuels since the acquisition contracts exceed 1.3 million tons per year.