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Groundwork under way for Singapore to adopt low-carbon hydrogen

The Straits Times

|

August 12, 2024

EMA calls for consultancy study on laws and policies to tap climate-friendly fuel

- Cheryl Tan

Singapore is laying the groundwork to tap low-carbon hydrogen as a cleaner fuel source more quickly when it becomes viable.

The Energy Market Authority (EMA) on Aug 6 called for a study to develop a framework of laws and policies, which could cover areas such as hydrogen imports, the ownership and operation of hydrogen infrastructure, as well as incentive and financing schemes.

"The consultancy study aims to pave the way for our potential adoption of hydrogen, by providing inputs to future policy, legislation and regulatory development in this area," EMA told The Straits Times.

Currently, the use of hydrogen - considered a more climatefriendly fuel than fossil fuels - is still in the research and testing phase here.

Low-carbon hydrogen could supply up to 50 per cent of Singapore's power needs by 2050, depending on technological advancements and the development of other energy sources. The Republic currently relies on natural gas for around 95 per cent of its electricity generation.

By 2030, there will be at least nine hydrogen-compatible power plants in Singapore.

However, experts and industry players told ST that while hydrogen-ready infrastructure is being developed, there are still barriers to the fuel's adoption, with cost the key one.

Currently, the cost of green hydrogen is three to five times higher than that of natural gas.

A spokesman for the Hydrogen and Fuel Cell Association of Singapore (HFCAS) said achieving cost parity between imported natural gas and green hydrogen by 2030 will require "substantial reductions" in the costs of green hydrogen production, storage and transportation.

In the meantime, government subsidies and policy support will play a crucial role in this transition, the spokesman noted.

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