Clean tech can scale up with state support, blended finance: Panel

Such technologies are on the rise across Asean as countries seek to reduce emissions

- Chin Hui Shan

Strong regulation, regional cooperation and blended finance mechanisms are among the solutions needed to increase the deployment of novel energy technologies in Southeast Asia, said panellists at the Singapore International Energy Week on Oct 30.

Such technologies include carbon capture, utilisation and storage (CCUS) as well as hydrogen. They are gaining prominence across Asean as countries seek to reduce emissions from their power sectors at a time when energy demand from the developing bloc is expected to rise.

Mr Craig Stewart, senior vice-president for international exploration and production and CCUS at Indonesian oil and gas firm MedcoEnergi, said CCUS technology is well established but costly.

CCUS technology can take planet-warming carbon dioxide (CO2) out of the atmosphere for storage underground, or for conversion into other useful materials such as fertilisers and biofuels.

Such projects can be realised if upfront costs for such projects are funded by the government, as they are in places like Europe, Mr Stewart said during a roundtable discussion on Asia's energy future moderated by The Straits Times' correspondent Shabana Begum.

He added: "The technical solutions are there, but the cost is high. The next questions about the commercial case here are who would do these projects and who is going to pay for them?"

Mr Kelvin Wong, managing director and global head of energy, renewables and infrastructure at DBS Bank, said strong regulatory frameworks are also important in helping to scale novel technologies.

He noted that renewable energy such as solar energy used to be costly and less widespread, although government policies helped to kick-start growth.