Located in the Sakra area of the island, the facility will use industrial and commercial waste to produce steam to cater to the companies in the vicinity.

The plant will comprise two boilers which can together produce 140 tons of steam per hour, and will cut down greenhouse gas emissions by about 50%.

Expected to be completed in early 2016, the facility will enable Sembcorp to supply a third of its customers’ steam needs in Singapore using eco-friendly alternative fuel.

In addition, the plant will use nearly 1,000 tons of industrial and commercial waste collected by the company’s solid waste management operations as fuel every day to convert waste into energy, as well as reduce disposal costs for waste it collects.

Sembcorp Utilities head & executive vice president Ng Meng Poh said "The facility will provide a reliable, economical supply of steam to serve customers’ needs, while helping them to reduce their carbon footprint.

"At the same time, this project will reduce disposal costs for our solid waste management operations and improve synergies between Sembcorp’s energy and solid waste management businesses."