SINGAPORE : Singapore will have its first 25 megawatt horticultural and wood waste plant by 2010. This is seen as a boost for the emerging biofuel sector.

Singapore-based Biofuel Industries in tying up with Indonesia's Medco Power to build the S$55 million facility here.

The plant will be able to power a community the size of Bishan with wood waste alone. But Medco said it will also have the potential to incorporate steam energy, once completed.

The new plant by Biofuel Industries and Medico is expected to eat up more than 60 percent of the 1,200 tonnes of horticultural and wood waste produced by Singapore everyday.

Er Kwong Wah, Chairman, Biofuel Industries, said: "Medco will bring the expertise in this sort of operation as well as the finances. They are expanding overseas, and we are happy to be the first partner in Singapore."

The facility is an extension of plans announced by Biofuel Industries and Industrial Power Technology last year to build a plant in Jurong. Medco will hold a majority stake in the facility.

It is in discussions with Singapore companies to ensure a constant flow of wood waste to the plant.

Medco also plans to gain additional revenue by utilising the steam created from burning the wood waste. It hopes to implement the steam addition two years after the completion of the plant.

The plant will be one of Singapore's largest carbon credit holders, creating some 135,000 units of credits.

Medco's main focus is on gas and oil, and it already has energy plants in US, Oman and Indonesia. - CNA/ms