Singapore’s energy and chemicals sector accounts for one of the country’s most emissions-intensive industrial clusters, with the energy and chemicals hub on Jurong Island alone representing a significant share of national industrial output and CO₂ emissions.
As regional hydrogen demand begins to crystallize, the government has signaled a preference for low-carbon hydrogen pathways that can be integrated into existing refining and petrochemical assets rather than relying solely on renewable-powered electrolysis, which remains constrained by land and resource limitations.
The latest move in that direction is a newly signed memorandum of understanding between Air Liquide Singapore and Aster Chemicals and Energy, aiming to evaluate an Auto Thermal Reformer (ATR) unit equipped with carbon capture. The agreement focuses on technical and commercial feasibility rather than deployment commitments, reflecting Singapore’s incremental, evidence-based approach to hydrogen adoption. ATR, which combines partial oxidation and steam reforming, is typically used for large-scale hydrogen and synthesis gas production and is regarded as an efficient pathway for blue hydrogen when coupled with high-performance carbon capture systems.
The proposed unit is designed to capture up to 99% of process CO₂—an ambitious target that places it at the upper boundary of global capture rates for reforming-based hydrogen. While capture rates above 95% have been demonstrated in select industrial projects, achieving 99% consistently requires optimized heat integration, advanced solvent-or membrane-based capture systems, and stable syngas conditions. Air Liquide cites experience with more than 30 ATR references globally, along with a portfolio of carbon capture projects, suggesting the partnership will draw on already commercialized process configurations rather than conceptual designs.
Aster brings the advantage of integrated refining-petrochemical infrastructure, a factor that strengthens the prospect of downstream utilization. Singapore’s industrial landscape is characterized by highly interconnected value chains, meaning hydrogen produced from an ATR-CCS facility could feed existing ammonia, refining, or chemical processes with minimal logistical friction. This integration is particularly relevant as regional industries evaluate low-carbon hydrogen as a feedstock rather than as a power-sector fuel, where cost and storage factors remain limiting.
Still, the commercial assessment must navigate several challenges. Blue hydrogen economics are highly sensitive to natural gas prices, capture system energy penalties, and carbon pricing regimes. Singapore’s carbon tax trajectory—set to rise to SGD 50–80 per ton by 2030—creates a stronger business case for capture, but long-term certainty around feedstock pricing and offtake demand will remain central to investment decisions. Moreover, transport and permanent storage of captured CO₂ depend on regional CCS infrastructure that is still emerging across Southeast Asia. Current cross-border CCS discussions, particularly involving Malaysia and Indonesia, could provide future storage pathways but have yet to mature into firm regulatory frameworks.
Within this context, the MOU serves as a test case for whether advanced ATR with high-rate carbon capture can offer a cost-competitive, scalable hydrogen option for Singapore’s hard-to-abate industries. If validated, it would align with the government’s stated priorities: technology-agnostic pathways, integration with existing industrial assets, and strong emphasis on reliability and system-level efficiency. Industry leaders in Singapore have repeatedly stressed that hydrogen deployment must complement, not disrupt, the country’s chemical and energy value chains—making ATR–CCS an option with strategic fit.
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