Singapore's Transition to Low-Carbon Hydrogen: Opportunities and Challenges Ahead
Key Ideas
  • Singapore aims to meet up to 50% of its power needs with low-carbon hydrogen by 2050, leading to the development of at least nine hydrogen-compatible power plants by 2030.
  • Challenges such as high production costs and the need for substantial reductions to achieve cost parity with natural gas by 2030 must be addressed through subsidies and policy support.
  • The government is investing in advancing hydrogen technology readiness through initiatives like the Direct Hydrogen Programme and pilot projects on Jurong Island, emphasizing the need for global supply chain development to drive down prices.
  • Recommendations from a recent consultancy study will guide the development of laws, policies, and infrastructure for hydrogen adoption, focusing on imports, ownership, operation, and financing schemes.
Singapore is making significant strides towards transitioning to low-carbon hydrogen as a cleaner fuel source to power the nation. The Energy Market Authority (EMA) has initiated a study to develop a comprehensive framework for laws and policies to facilitate the adoption of hydrogen. While hydrogen technology is still in its research phase in Singapore, the country aims to have low-carbon hydrogen supply up to 50% of its power needs by 2050, potentially with nine hydrogen-compatible power plants in operation by 2030. However, challenges such as the high cost of green hydrogen, currently three to five times higher than natural gas, pose barriers to widespread adoption. Achieving cost parity with natural gas by 2030 will require substantial cost reductions, which can be addressed through government subsidies and policy support. The government's investments in initiatives like the Direct Hydrogen Programme and pilot projects on Jurong Island highlight a commitment to advancing hydrogen technology readiness. The consultancy study conducted by EMA aims to guide the development of laws and policies to support hydrogen adoption, focusing on areas like imports, ownership, operation, and financing schemes. Recommendations from the study will play a crucial role in shaping Singapore's transition to a low-carbon economy through low-carbon hydrogen. Key industry players emphasize the importance of global supply chain development to drive down prices and make hydrogen more accessible and cost-effective.
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