Singapore to appoint developer for low-carbon ammonia power generation and bunkering

THE Singapore government is a step closer to clean ammonia power generation as it plans a request for proposals on developing and operating ammonia combustion power plants and bunkering facilities in Jurong Island.

Based on the proposals received, the government will appoint a lead developer for the project, said Trade and Industry Minister Gan Kim Yong on Monday (Oct 23), who was speaking at the launch of the Singapore International Energy Week.

“This will be one of the first commercial projects in the world to test and deploy the use of ammonia as a fuel. It is an important milestone for Singapore’s search for viable decarbonisation pathways,” said Gan.

The request for proposals will be launched before the end of 2023. It comes after the Energy Market Authority (EMA) and the Maritime Port Authority of Singapore (MPA) launched an expression of interest (EOI) in December last year for such projects, as part of a wider national strategy to power Singapore with hydrogen to meet the country’s net-zero by 2050 target.

Six consortiums were shortlisted after the EOI received 26 proposals from both local and foreign interest, which Gan said reflected “strong industry interest”.

The ammonia power generation project would involve generating between 55 MW and 65 MW of electricity from imported low-carbon or zero-carbon ammonia via direct combustion in a gas turbine or combined cycle gas turbine. It will also facilitate ammonia bunkering at a capacity of at least 0.1 million tonnes per annum, starting with shore-to-ship bunkering followed by ship-to-ship bunkering.

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EMA and MPA said that the government will work closely with the selected developer to implement the project, given the nascency of the technology and global supply chains.

They added that ammonia is a widely used chemical around the world – including in Singapore – and has been shipped as well as used for decades.

Ammonia is currently one of the most technologically ready hydrogen carriers with an established international supply chain. In addition to its ability to be cracked back into hydrogen, ammonia also has the potential to be used directly as a low-carbon fuel, therefore offering multiple utilisation pathways for deployment.

Besides piloting ammonia power generation, Gan also announced that Singapore will be centralising the procurement and supply of gas to the power sector to improve the resilience of its natural gas supplies.

This is in view of how global gas market conditions are expected to be more volatile with the energy transition.

As Singapore does not have much domestic renewable energy resources, Gan said that it is exploring other low-carbon alternatives, including geothermal heat, biofuels and nuclear.

While Gan said that Singapore has not made any decision on whether to deploy nuclear energy, it is studying advanced nuclear technologies, such as small modular reactors, on their suitability for Singapore.

He also laid out a few areas where the energy system needs to evolve, in light of the complexity involved in energy transition and the significant uncertainties that come with it.

For one thing, governments need to play an active role in planning, coordinating and facilitating investments across the energy value chain. Regulators will need to rethink existing market mechanisms so that investors have sufficient visibility and certainty, while ensuring that competition remains effective.

Consumption of electricity by individuals and corporates will also have to be more efficient, and the government can drive this change through the right pricing of electricity and carbon taxes.

“As we decarbonise our energy system, we must bear in mind that it will not be without cost. For example, importing renewable energy over long distances increases the cost of electricity. Our approach is to retain the right price signals for the economy as a whole, while also extending help to those who need it,” said Gan.