Singapore to build 700MW data centre park on Jurong Island, pilot biomethane imports: Tan See Leng
Some 20 hectares of land will be set aside for the low-carbon data centre park
[SINGAPORE] Singapore will build a low-carbon data centre park on Jurong Island with up to 700 megawatts (MW) of capacity – its largest such facility – and set up a regulatory sandbox to explore biomethane as a low-carbon fuel.
These moves and other green efforts were announced by Minister-in-charge of Energy and Science & Technology Tan See Leng at the Singapore International Energy Week (SIEW) on Monday (Oct 27).
“Our goal is not just to get through the energy transition, but to emerge even stronger by capturing new growth opportunities and creating new good, growth jobs for all of our workers,” said Dr Tan, who delivered the opening lecture of SIEW at the Sands Expo and Convention Centre.
Some 20 hectares (ha) of land has been set aside on the 3,000 ha Jurong Island to develop the data centre park. It will significantly increase Singapore’s total data centre capacity, which stands at more than 1.4 gigawatts (1,400 MW) across over 70 data centres.
The data centre park’s low-carbon emphasis is in line with Singapore’s 2024 Green Data Centre Roadmap, which addresses the high carbon footprint of data centres. Singapore aims to hit net-zero emissions by 2050.
“Operators can leverage (Jurong Island’s) ecosystem, such as shared energy storage infrastructure and utilities, ample power capacity as well as emerging low-carbon energy sources,” the Singapore Economic Development Board (EDB) and industrial landlord JTC said in a statement.
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The Republic had previously imposed a moratorium on new data centres from 2019 to 2022, following concerns about their high energy and water consumption.
New data centres are required to meet efficiency standards, adopt advanced cooling systems and tap renewable energy sources.
Biomethane sandbox
Dr Tan also announced that Singapore is looking into biomethane as a viable low-carbon fuel. Last month, EDB issued a closed call for proposals to demonstrate biomethane’s potential for power generation and industrial applications.
Biomethane is a renewable fuel that can be used interchangeably with natural gas in power plants. It is derived from biogas, which is in turn produced from organic matter such as agricultural waste.
Europe, China and the US account for 90 per cent of global biogas production. Only a small share of biogas is upgraded to biomethane, but this proportion is increasing and has growth potential, according to the International Energy Agency.
Its “drop-in” nature can save Singapore costly asset upgrades, given its compatibility with existing infrastructure, said Dr Tan.
The biomethane sandbox has a capacity of up to 300 MW, to catalyse supply chain development and facilitate adoption by key industry players. Selected power generation companies will be appointed as supply and demand aggregators early next year.
Jurong Island’s green pivot
These moves come as Singapore shifts its energy and chemicals sector towards greener technologies and products.
Dr Tan said that Jurong Island, which celebrates its 25th anniversary this year, “will power the future of low-carbon innovation in the energy and chemicals sector”.
The island is on track to achieve three sustainability targets for 2030.
First, there was a 1.4 times increase in the output of sustainable products last year, from 2019 levels. Singapore aims to achieve a 1.5 times increase by 2030.
Secondly, Singapore’s refineries and crackers currently rank within the top half of the industry for energy efficiency, and are working towards the 2030 goal of being in the top quartile.
The third target is to realise at least two million tonnes of carbon capture by 2030. S-Hub, a consortium of Shell and ExxonMobil, is studying the viability of a cross-border carbon capture project from Singapore.
When fully developed, the project will be capable of capturing and storing at least 2.5 million tonnes of carbon dioxide a year, said EDB and JTC.
More than 1,000 jobs
Singapore also aims to develop Jurong Island into a hub for speciality chemicals and sustainable materials.
There has been rising interest from speciality chemicals players to grow their presence here, driven by regional demand. “Singapore is well-positioned to tap this opportunity,” said Dr Tan.
Since 2021, there have been more than 30 new speciality chemicals projects across manufacturing and research and development from global companies such as Arkema, Cariflex and Kuraray.
When fully realised, these investments are expected to create more than 1,000 jobs for both fresh graduates and experienced hires, said EDB and JTC.
The roles include manufacturing operations, research and innovation, process engineering, sustainability, and corporate functions.
Gas and grid capabilities
Singapore is also introducing new measures related to gas power plants and grid capabilities.
It will award up to S$44 million to Keppel and Sembcorp to support their deployment of the first two advanced power plants in Singapore by the end of 2026.
The award is part of an incentive scheme to encourage the adoption of more carbon-efficient gas power plants.
Dr Tan noted that natural gas still plays a fundamental role in Singapore’s energy mix. Singapore GasCo – which the government set up in April to centralise gas procurement – will launch its gas procurement activities early next year.
Separately, the Energy Market Authority (EMA) and utilities company SP Group are exploring the establishment of an SP Technology Laboratory to develop solutions for grid planning and operations.
Singapore has one of the most reliable grid systems in the world, with each customer experiencing less than one interruption per year, lasting around 10 to 15 seconds, on average.
But Republic is “not resting on our laurels”, Dr Tan said, adding that SP is on schedule to deploy smart meters to all commercial, industrial and residential consumers by the end of next year.
“Through these measures, SP Group will ensure: first, continued grid reliability as greater volumes of intermittent renewable sources are introduced in the coming years; and second, improved operational efficiency to ensure that our grid charges remain cost-competitive,” he said.
Virtual power plants (VPPs) are another area of focus, with the creation of a new regulatory sandbox by EMA.
VPPs are digital platforms capable of aggregating a network of distributed energy resources, such as rooftop solar panels and electric vehicle chargers.
The sandbox, which will run for two years, will test the capabilities of VPPs in providing energy to the grid. Its participants are Blue Whale Energy, Nanyang Technological University and SP Group.
EMA has also launched an Energy Grid 3.0 Grant Call for proposals to enhance grid planning, as Singapore begins to tap more renewable energy.
The grant call is open to consortia whose members may be institutes of higher learning, research institutions or private companies.
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