Singapore-based independent power producer (IPP) Tuas Power will increase its biomass-fired capacity in or by 2027 by converting some of the co-fired boilers to burn solely biomass, market participants told Argus.
Tuas Power meets about 20pc of Singapore's total electricity demand and sells other services such as steam, high-grade industrial water and wastewater treatment through its Tembusu Multi-Utilities Complex (TMUC).
The company, owned by China's Huaneng Power International, is likely converting its key biomass-clean coal cogeneration plant at the TMUC facility to a 100pc biomass-fired unit, the market participants said. It currently co-fires coal and biomass.
The facility will use imported palm kernel shells (PKS) and domestic wood waste for biomass fuel after the conversion, a trader said, adding that Tuas Power has likely reached out to several trading houses and PKS suppliers for the cargoes.
The utility plans to procure more than 1mn t/yr of imported PKS from southeast Asian countries like Indonesia and Malaysia, and around 300,000 t/yr of domestic wood waste derived from horticultural activities in Singapore, according to market participants.
TMUC's co-fired plant will likely burn more than 1.3mn t/yr of biomass to generate 135MW of power and produce high-pressured steam for industrial sale. The converted units could start operations from around 2027-28, the market participants added.
Argus has approached Tuas Power for comment but it has not responded to queries.
Certification
The project could disrupt the future PKS market dynamics because it could lead to a sharp increase in demand for certified cargoes, according to market participants.
Historically, Tuas Power has never had a mandate for procured PKS to go through third-party certification bodies. But it could be buying certified PKS after the conversion because nearly all market volumes have undergone some level of certification, with very little uncertified spot cargoes left.
This comes as Japanese demand in the certified PKS market records steady growth this year. Meanwhile, consumption is also projected to rise next year because of the many new Japanese power plants coming on line until the end of 2026.
