In a significant move towards sustainable energy, Singapore is launching a Future Energy Fund with an initial investment of S$5 billion (US$3.7 billion), according to Deputy Prime Minister Lawrence Wong’s Budget statement on Friday.
Massive Transition to Cleaner Fuels
Deputy Prime Minister Wong emphasized the need for a “massive” transition to cleaner fuels, describing it as an emerging security challenge. The new Future Energy Fund aims to provide confidence for timely investments, allowing swift action on critical infrastructure and enhancing clean energy security.
Natural Gas Transition
While natural gas remains crucial in the near to medium term, constituting about 95% of Singapore’s electricity generation, Wong emphasized the limitations of achieving net-zero emissions solely relying on natural gas. Despite being the cleanest fossil fuel, Singapore aims to diversify its energy sources to meet sustainability goals.
Exploring Clean Energy Alternatives
Recognizing the limitations of importing electricity, Singapore is exploring alternative clean energy options. The country is making strides in hydrogen adoption, with plans to test and deploy ammonia, a hydrogen carrier, for power generation and bunkering on Jurong Island. Additionally, Singapore is assessing the feasibility of geothermal power and tracking developments in nuclear energy.
Challenges and Catalytic Funding
Deputy Prime Minister Wong acknowledged the massive scale of the energy transition and the significant effort required. Importing low-carbon electricity and scaling up hydrogen usage will demand substantial investments in infrastructure, necessitating government support to complement private sector initiatives.
As Singapore endeavors to transform its energy landscape over the next two decades, catalytic funding from the government becomes crucial in overcoming challenges and ensuring a successful transition to clean energy.
Source：channelnewsasia.com
