Singapore is embarking on a groundbreaking journey to generate 50% of its power from low-carbon hydrogen by 2050. Faced with land scarcity for conventional renewables, the Lion City is placing its bets on hydrogen—a move underpinned by the National Hydrogen Strategy.
Singapore’s National Hydrogen Strategy encompasses diverse applications, spanning industrial, maritime, and aviation sectors. However, the linchpin of this strategy is the power sector, contributing almost 40% of primary emissions in 2020. The ambitious goal is for hydrogen to supply half of Singapore’s power needs by 2050.
Despite the laudable aspirations, Singapore encounters formidable challenges. Foremost among them is the high cost of low-carbon hydrogen production, ranging from $3.4 to $12 per kilogram. This overshadows the levelized cost of hydrogen from fossil fuels, estimated at $1 to $3 per kilogram in 2021, according to the International Energy Agency.
Implementing large-scale hydrogen deployment necessitates a substantial infrastructure overhaul. Singapore must establish a comprehensive network, including pipelines, import terminals, and hydrogen turbines for power generation. The transition, while essential for sustainability, comes with associated costs that need careful planning and a clear allocation strategy.
The private sector is pivotal in driving Singapore’s green hydrogen ambitions. Operational plants like the REIDS-SPORE Hydrogen Plant and collaborations between Keppel Corp, Mitsubishi Heavy Industries, and IHI underscore the collaborative efforts. Meranti Power’s initiative to develop hydrogen-compatible gas turbines further demonstrates private sector commitment to green hydrogen adoption.
Hydrogen and its derivatives offer a myriad of benefits to Singapore. Acting as a dispatchable power source, it provides balancing and peaking power to the grid. Sourcing hydrogen from diverse markets ensures supply security, and it serves as a low-carbon feedstock for hard-to-abate sectors, contributing significantly to the nation’s net-zero journey.
To foster hydrogen development, Singapore can learn from global best practices. Policies such as quotas for hydrogen use, financial incentives, tax breaks, and support for pilot tests can de-risk early investments and attract crucial industry players. The EU’s quotas for green hydrogen and subsidies from countries like the US and France serve as exemplary models.
While Singapore is committed to boosting renewables and imports of low-carbon electricity, achieving the net-zero goal by 2050 requires innovative solutions. Land constraints and energy security concerns make low-carbon hydrogen a potent contributor to Singapore’s decarbonization journey.
