Bioenergy can be segmented into biomass and biogas. Biomass fuel is created from horticultural waste and wood waste. These materials are burned in incinerators which generate heat and steam to drive turbines, providing energy. Biogas is generated from anaerobic digestions, which is the breakdown of organic matter such as food waste and animal waste by microorganisms in the absence of oxygen. This gas then provides energy. The potential for bioenergy in Southeast Asia is fuelled by the agricultural industry, presents many business opportunities.

In Singapore, bioenergy currently makes up a small percentage of Singapore’s energy mix, but it has recently been established as an economically viable solution to increasing energy demands, thus it is set to grow further.