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Hyflux-Mitsubishi consortium to build S$750m waste-to-energy plant in Tuas

SINGAPORE: A consortium comprising Hyflux and Mitsubishi Heavy Industries (MHI) will build Singapore’s sixth waste-to-energy (WTE) plant in Tuas, the National Environment Agency (NEA) announced on Tuesday (Sep 15).

Water management provider Hyflux and MHI were selected among six bids in a tender held in November last year, said NEA.

“At a first-year cost of S$55.19 per tonne, the Hyflux and MHI consortium submitted the most competitive offer for the development of a WTE plant and the provision of waste-to-energy services over a 25-year period,” explained NEA in a news release.

The project is valued at about S$750 million and it is expected to be completed by 2019, said Hyflux in a news release. The firms will form a concession company for the project, with Hyflux owning a 75 per cent stake and MHI 25 per cent.

Hyflux will undertake engineering, procurement and construction works worth S$636 million and MHI will provide the technology. Both companies will then jointly manage, operate and maintain the plant, said Hyflux.

The WTE will be Singapore’s largest and most energy-efficient plant, said NEA. It can produce 2,880MWh of electricity per day from incinerating waste, and the energy will be used to run the plant and power Singapore’s electricity needs.

The plant will also help to meet Singapore’s waste disposal needs, as the amount is expected to increase amid economic and population growth.

The plant will be located on a 4.8-hectare site next to Tuaspring Integrated Water and Power Project.

Currently, the power generated from the four existing WTE plants supplies about 2 to 3 per cent of Singapore’s electricity needs, said NEA. The first WTE plant, Ulu Pandan Incineration Plant, was decommissioned in 2009 after 30 years.

The project is not expected to have a material impact on Hyflux’s financial position for the year ending Dec 31, 2015, said the company.

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