Given the continued rise in domestic electricity demand, Singapore plans to add two new hydrogen-natural gas hybrid power plants by 2030 to ensure stable and secure power supply. The Energy Market Authority (EMA) of Singapore has invited the private sector to participate in the construction and operation of these power plants. Each plant is expected to have a capacity of 600 MW, which can supply electricity to 864,000 households.

Singapore mandates 30% hydrogen blend in new and upgraded natural gas power plants this year

Traditional natural power plants could reduce the carbon emissions by blending hydrogen. Since this year, the Energy Market Authority of Singapore requires all new and upgraded natural power plants to improve there carbon efficiency by 10% and operate with a 30% hydrogen blend. These power plants must be converted to operate fully on hydrogen fuel in the future.

By 2030, Singapore is expected to have at least nine hydrogen-natural gas hybrid power plants, with a projected total capacity exceeding 3.7 GW. This includes four plants being developed by Singapore's PacificLight and Meranti, which are expected to start operations in 2025. Other plants include Keppel's Sakra Cogen, YTL PowerSeraya, and Sembcorp Industries. Sembcorp Industries is anticipated to come online between 2026 and 2027.

The short-term costs of hydrogen blending technology are high, but in the long term, they offset the costs of carbon taxes.

Currently, 90% of Singapore's electricity comes from natural gas power generation. In recent years, Singapore's electricity demand has continued to increase, primarily driven by advanced manufacturing, digital economy, and transportation. Due to the growth of these energy-intensive industries, electricity demand is expected to grow by at least 3.7% over the next six years, reaching between 10.1 GW and 11.8 GW by 2030.

Although the construction costs of hydrogen-natural gas hybrid power plants are higher than those of traditional ones in the short term, David Broadstock, Head of Energy Transition Research at the Institute of Sustainability and Green Finance at the National University of Singapore, believes that "as carbon taxes continue to rise, the costs of using natural gas alone will also increase, and blending hydrogen will help to partially offset these costs."

※ This article is reprinted with permission from 'RECCESSARY', originally titled 'Electricity Increases by 3.7% Annually! Singapore Adds Two More Hydrogen-Mixed Natural Gas Power Plants to Meet the Needs of Three Major Industries', written by Li-Yen Chen and Ying-Hsuan Chen. Not applicable to CC Creative Commons licensing terms.

Reference:

The Straits Times（2024/6/5），Singapore plans to build two more hydrogen-ready natural gas power plants by 2030

MENAFN（2024/6/4），Singapore invites private sector participation in hydrogen-ready power projects

Source: Environmental Information Center