In a first for Asia, Singapore’s YTL PowerSeraya has signed an agreement with Malaysia’s BAC Renewable Energy (BACRE) for the supply of bio-LNG, a clean fuel derived from organic waste. The companies confirmed the deal on November 4, reports Bioenergy Insight.
This agreement is the first to be finalized under a new Singaporean government program, launched on October 27, which is designed to test the import of biomethane for power generation and industrial use.
“This agreement is the first of its kind for a physical bio-LNG supply in Asia,” said Norzaifizy Khalid Nordin, BACRE’s Business Development Director.
Under the deal, the Malaysian company will be responsible for producing and gathering bio-LNG from across Southeast Asia and for setting up the necessary supply chain to deliver it. BACRE is moving forward with renewable gas projects in Malaysia and nearby countries and plans to build small-scale processing plants throughout the region.
The company also intends to hire a specialized ship to transport the bio-LNG, which could also be used as a cleaner fuel for ships.
YTL PowerSeraya, one of Singapore’s largest power generators, stated that this initiative supports the country’s goal of diversifying its sources of low-carbon energy. The company provides enough electricity to meet roughly 30% of the nation’s total demand.
This landmark deal follows several other announcements about biomethane made during a recent major energy conference in Singapore, indicating the city-state’s commitment to incorporating renewable gases into its energy supply.
