Sembcorp Industries (Sembcorp) has opened a new SGD$34m ($27.2m) wood chip-fueled biomass steam production plant located in Jurong Island's Sakra district in Indonesia.

The production plant is capable of producing 20 tons per hour of process steam using waste wood collected and processed by Sembcorp’s solid waste collection business.

Sembcorp executive vice president Singapore and ASEAN (Utilities) Ng Meng Poh said, "Our woodchip boiler plant is significant for
Sembcorp in our journey as a vital partner to the industry on Jurong Island."

The company also announced the expansion of the woodchip boiler plant with the development of a second boiler, which will have a capacity of 40 tons per hour of steam.

Sembcorp said the expanded facility will be able to produce a total of 60 tons per hour of steam, following completion in 2013.

Both the boilers are expected to offset carbon dioxide emissions by an estimated 70,000 tons per year.

The expansion is in line with the company’s target to supply alternative fuel by 2014 to its customers steam demand in Sakra.

Sembcorp said it will also be developing two new energy-from-waste boilers on Jurong Island, which will produce 140 tons per hour of steam.

The boilers will utilize industrial and commercial waste collected and processed by Sembcorp’s solid waste collection business.

On completion, Sembcorp woodchip boiler plant’s second boiler and the two new energy-from-waste boilers will increase the company’s energy-from-waste capacity by ten-fold.