PowerSeraya opens 800MW Co-Generation Combined Cycle Plant

Completion of S$800million facility strengthens competitiveness of Jurong Island as Singapore’s petrochemical hub.

Petrochemical companies on Jurong Island will benefit further from third-party outsourced utilities as PowerSeraya launches its newest 800MW Co-Generation Combined Cycle Plant. The company, part of YTL Power, unveiled the natural gas-fired facility on Wednesday, which is capable of producing electricity and steam simultaneously for export to customers in the Seraya cluster. The S$800 million facility also marks the expansion of PowerSeraya’s diversified energy strategy to offer multi-utility services that include electricity, steam and water, according to a PowerSeraya report.

The establishment of the facility is expected to boost the company’s position in Singapore where it currently holds the largest share of 30% in the energy retail contestable market.

Diversified energy approach to support industry growth
PowerSeraya’s diversified energy strategy has focused on transforming the company from its core business centred on electricity into a multi-commodity integrated energy company in steam, water, oil and gas markets. With the new Co-Generation Combined Cycle Plant, coupled with the successful conversion of two units of its combined cycle power plants, PowerSeraya now holds the largest co-generation capacity of close to 1,500MW in Singapore.

This further strengthens the company’s multi-utility capability to expand its product and service offering to cater to the growing energy needs of more than 95 petrochemical companies located on Jurong Island.

Since 2007, electricity consumption in Singapore has grown by about 25% (source: Index Mundi). PowerSeraya in its new capacity is therefore well-positioned to support the growth and development of its client base and the industry.

“The establishment of the Co-Generation plant is a testament of our commitment to meet the growing demand and opportunity we see in the sector. With the new plant, PowerSeraya will be able to improve the competitiveness of steam-user companies on Jurong Island by allowing them to focus on their core business due to a resulting decreased need for them to produce their own steam supply through internal operational conversions. This allows them to reduce their business capital and operating costs,” said John Ng, CEO of PowerSeraya.

In the same way, the natural-gas fired facility will support the Jurong Island 2.0 initiative The Jurong Island 2.0 initiative will look at five key areas of energy, logistics and transportation, feedstock options, environment and water to improve energy efficiency and overcome resource limitations on the island, which seeks to further strengthen the Singapore petrochemical industry's competitiveness in the coming decade.

Achieving resource efficiency with new plant
The Co-Generation Plant is designed for increased thermal efficiency to deliver cleaner energy and steam to customers with higher reliability and availability. Utilising state-of-the-art technology, PowerSeraya will be able to harness waste heat produced from the electricity generation process in the Co-Generation Plant and utilise water from its own Seawater Reverse Osmosis (SWRO) Desalination Plant to produce up to 600 tonnes per hour of high-pressure steam. This not only aligns with Singapore’s Sustainable Development Blueprint’s goal of achieving resource efficiency, but is also expected to decrease the company’s overall carbon footprint by a further 10%.

Achieving synergies with YTL Power to augment growth
PowerSeraya’s strengthened position as an integrated energy player will enhance parent company YTL Power’s strategic intent to grow its utility presence in the region – one that is underpinned by a focus on the development and acquisition of utility businesses.

“PowerSeraya has made commendable efforts in transforming itself from a single commodity power company to a multi-faceted energy company. With PowerSeraya’s multi-utility capabilities and excellent customer service reputation, we see the company as a clear platform for growth in Singapore and the region,” said Tan Sri Dato’ (Dr) Francis Yeoh, Chairman of the PowerSeraya Group and also Managing Director of YTL Power.

Currently, YTL Power’s businesses encompass power generation in Malaysia and Indonesia; power transmission in Australia; provision of water and sewerage services in the United Kingdom; as well as plant operations and maintenance in Indonesia.

Added John Ng, “With both Groups’ complementary strengths in expertise and infrastructure, we are poised for a competitive future to accelerate expansion and build into new growth areas with international capabilities. Working closely with our parent company, we will be able to offer a new, stronger business value to the market and meet customers’ specific needs.”

Already, PowerSeraya’s new Co-Generation Combined Cycle Plant is providing a 15-year supply of steam to Petrochemical Corporation of Singapore. Its own SWRO Desalination Plant, which has the capability to produce high grade service water for power production and potable water, is also currently supplying the latter to the marine services sector. Capitalising on its ideally-located jetties on Jurong Island, the company has also been able to procure physical fuel oil for power generation, bunkering and resale.