Companies in Singapore this week unveiled a number of projects aimed at importing low-carbon sources of energy, setting the tone for a transition to cleaner power to help fight climate change.
Low-carbon energy sources include hydrogen, wind and solar. Companies linked to Singapore state investor Temasek are pursuing initiatives that will eventually allow the city-state to import electricity produced from these green energy sources from ASEAN countries like Vietnam, Malaysia and Indonesia.
The Energy Market Authority (EMA), an industry watchdog in the city-state, said on Tuesday it was granting approval to Temasek-backed Sembcorp Utilities to import low-carbon electricity from Vietnam, which will transmitted via a new subsea cable over a distance of around 1,000 kilometers.
“The electricity will primarily be from offshore wind power, which Vietnam is blessed with,” Singapore’s Second Trade and Industry Minister Tan See Leng said. “We are now studying the possibility of taking in more electricity import projects, taking into account energy security and cost considerations.”
Sembcorp will partner with Vietnam’s Petrovietnam Technical Services Corporation to tap into the renewable energy. The EMA says that Singapore, due to its small size, is looking to regional power grids for clean energy sources to overcome land constraints.
“Regional power grids can accelerate renewable energy development in the region and facilitate economic growth while diversifying energy sources away from fossil fuels,” the energy watchdog said.
By 2035, Singapore plans to import four gigawatts of low-carbon electricity, or enough energy to power 400 million light-emitting diode bulbs, according to the U.S. Department of Energy.
Vietnam is not the only source of energy eyed by Sembcorp, with the company unveiling on Tuesday a plan involving Indonesia. It signed an agreement with Indonesian state-owned utility company PT PLN for a joint study on importing power from Southeast Asia’s largest economy.
The study will explore the feasibility of green hydrogen production in Indonesia for export to Singapore. The venture is proposing a facility that could potentially produce up to 100,000 tonnes of green hydrogen annually in Indonesia from locally sourced renewable energy.
This power will then be exported via subsea pipeline to Singapore. The project is being touted as Indonesia’s first green hydrogen export to its northern neighbor.
“Hydrogen and its derivatives remain one of the most promising substitutes for natural gas in power generation,” said Wong Kim Yin, chief executive officer of Sembcorp Industries, the parent of Sembcorp Utilities. “We endeavor to co-develop a viable low-carbon hydrogen supply chain in ASEAN that will diversify energy sources for both countries.”
City Energy, a wholly owned subsidiary of Singapore’s Keppel Infrastructure Trust, which is backed by Temasek, is also engaged in a similar initiative with Malaysia.
Clean energy solutions provider Gentari, a subsidiary of Malaysia-owned energy group Petronas, said on Tuesday that both companies signed an agreement to explore the construction of a pipeline from Malaysia to Singapore for the import of hydrogen into Singapore.
“This collaboration with City Energy is a strategic step for Gentari toward accelerating the adoption of clean hydrogen as a viable energy source,” said Michele Azalbert, Gentari’s chief hydrogen officer. “Gentari is pleased to contribute toward accelerating the development of clean hydrogen through cross-border infrastructure, supporting Malaysia and Singapore’s target to achieve net-zero emissions by 2050.”