Taking Singapore forward as a regional green hydrogen hub

THE confluence of recent developments – geopolitical, economic and environmental – has put energy transition at an inflection point. The sudden rebound in energy demand and the Russian-Ukraine conflict have led to an increasing volatility of energy prices, and concerns relating to energy security. The broader decarbonisation agenda is currently under threat of being relegated to the back burner as countries return to the activation of fossil fuel plants and reconsider their net-zero climate pledges amid economic tensions. In the short term, what stands as reality is these economic and security considerations could triumph longer-term climate objectives.

Singapore has remained steadfast in its climate goals in the face of these developments and is focusing on power sector decarbonisation given the sector’s significant contribution to its overall carbon emissions. The Energy Market Authority recently published its Energy 2050 Committee report, laying down three possible net-zero pathways for the sector. One of the probable pathways stated envisages low-carbon hydrogen becoming the main energy source by 2050, accounting for up to 60 per cent of Singapore’s energy supply mix. Singapore’s Deputy Prime Minister Heng Swee Keat has also just announced that the country will establish an ESG Impact Hub to strengthen collaboration and fuel the fast-growing sustainability ecosystem.

These are all steps in the right direction and afford opportunities for Singapore to bring alternative fuels to the mainstream. Given the importance of green hydrogen as a possible zero-carbon solution, we have an opportunity to take regional leadership in this space. The use of hydrogen as an energy and storage alternative is being researched even as related technologies are evolving. While it is anybody’s guess when the large-scale use of green hydrogen can become commercially viable, there is little dispute that it remains the most suitable alternative to replace fossil fuels in the medium- to long-term. Multiple pilot projects initiated by governments, multilateral agencies and the private sector are already laying the foundation for potential technological disruption.