The first utility plant to burn coal in Singapore officially opened on Wednesday.

It burns coal, palm kernel shells, woodchips, gas and diesel to supply steam and electricity to petrochemical firms on Jurong Island, and uses low-ash, low-sulphur coal, filters and enclosed transport systems to minimise pollution.

The $2 billion project by Tuas Power, which is owned by Chinese firm China Huaneng Group, is the largest investment by any Chinese firm in Singapore, said Minister for Trade and Industry Lim Hng Kiang.

The project is part of a slate of other Jurong Island developments, called Jurong Island 2.0, to make the industrial hub more integrated, competitive and sustainable, he added.