In a bid to diversify its energy portfolio and embrace cleaner alternatives, Singapore’s City Energy recently announced a groundbreaking initiative.
The energy company, a subsidiary of Keppel Infrastructure Trust, has partnered with Gentari, Petronas’ renewables unit, to conduct a feasibility study on a proposed hydrogen strategy, which would include a pipeline from Malaysia to Singapore.
This ambitious project aims to transport “low-carbon hydrogen” to Singapore by 2027, potentially revolutionizing the city-state’s energy landscape, and helping it reach its net zero by 2050 goal.
The Hydrogen Renaissance in Singapore
Understanding Hydrogen: Hydrogen, the most abundant element in the universe, has emerged as a crucial player in the transition towards clean energy. In its pure form, hydrogen is a clean-burning fuel that produces only water vapor as a byproduct, making it a promising alternative to traditional fossil fuels.
Color-Coded Hydrogen: Hydrogen comes in various colors, each denoting the method of production and its environmental impact. Grey hydrogen is derived from natural gas, emitting significant carbon dioxide during production. Blue hydrogen, on the other hand, incorporates carbon capture and storage, mitigating its carbon footprint. Green hydrogen is produced using renewable energy sources, making it the cleanest option.
The Hydrogen Pipeline Proposal
The proposed pipeline would link the Malaysian state of Johor to City Energy’s Senoko gasworks plant in Singapore, covering a relatively short distance.
This collaboration underscores the growing interest in hydrogen as a clean energy source and the importance of cross-border partnerships in achieving sustainable energy goals.
But what impact would that have on the city?
Environmental Impact and Carbon Emissions
One of the key considerations in the feasibility study is the environmental impact of the hydrogen production process. Grey hydrogen, a byproduct of natural gas, generates more carbon emissions compared to blue hydrogen, which incorporates carbon capture and storage. As the world transitions to cleaner energy sources, the importance of reducing carbon emissions is paramount, making blue and green hydrogen more attractive options.
Financial Considerations and Project Financing
While the feasibility study is underway, the project’s financial aspects remain uncertain. Perry Ong did not provide a cost estimate for the pipeline, leaving questions about how the project will be financed if it proceeds. The financial viability of such projects often depends on government support, private investments, and the overall economic feasibility of hydrogen as an energy source.
Global Hydrogen Trends and Cost Structures
Ong highlighted the global trend of exploring hydrogen transportation through vessels, emphasizing that piping hydrogen could potentially be more cost-effective. Many ongoing studies worldwide are exploring various technologies for hydrogen transport, but piping hydrogen over short distances could provide a cost advantage. This approach aligns with Singapore’s geographical proximity to Malaysia, making piped hydrogen an attractive option.
Singapore’s Role in the Hydrogen Transition:
Piped Hydrogen vs. Vessel Transportation: City Energy’s emphasis on piped hydrogen underscores a unique approach in the global context. While many countries explore transporting hydrogen via vessels, Singapore’s geographical proximity to Malaysia makes piped hydrogen an economically attractive option for the region.
Commercial and Industrial Applications: City Energy’s vision to supply imported hydrogen to the commercial and industrial sectors aligns with Singapore’s economic landscape. If successful, this initiative could redefine how businesses in the region meet their energy needs, potentially influencing operational costs, sustainability targets, and overall energy efficiency.
Impact on Consumers and Business:
Economic Considerations: As Singapore explores hydrogen imports, questions arise about the potential impact on consumer bills. While initial investments and infrastructure development may influence energy prices, the long-term benefits of a cleaner and more sustainable energy mix could contribute to overall energy stability and potentially lower costs.
Business Innovation and Sustainability: The adoption of hydrogen by businesses could foster innovation and sustainability. Industries that rely on hydrogen as a feedstock, such as petrochemicals, may undergo transformations to embrace cleaner and more environmentally friendly practices.