The EDB outlined a plan to transform Jurong Island into a sustainability Energy and Chemicals Park. Could you explain the broad vision of this plan?

The plan is called Sustainable Jurong Island and it represents Singapore’s continued commitment to the Energy and Chemicals (E&C) industry as well as a recognition that the industry can and must become more compatible with Singapore’s long-term aspiration of achieving net zero emissions by or around mid-century.

Jurong Island is the cornerstone of the energy and chemicals industry hosting over US$50 billion dollars in plant investments.

In the future, we envision that a more sustainable Jurong Island would remain one of the most important energy and chemicals export hubs globally. By 2050, it will quadruple the output of sustainable products and achieve more than 6 million tonnes of carbon abatement per annum.

This transformation of Jurong Island will encompass new infrastructure such as Carbon, Capture, Utilisation and Storage (CCUS), and novel energy production, storage and distribution systems. This would translate to additional spin-offs in other sectors, such as carbon services, carbon trading, and logistics.

As part of the Sustainable Jurong Island Report, Singapore aims to increase the output of sustainable products by 1.5 times from 2019 levels. Can you elaborate on the opportunities in this sense?

Singapore’s interim aspirations to increase output of sustainable products 1.5 times by 2030 from 2019 levels is already underway. Finnish energy giant, Neste, is expanding its capacity to develop and produce renewable and sustainable diesel and aviation fuel, making the Singapore plant their largest production site globally with a 1.3 million t/y capacity. French specialty chemicals player, Arkema, is expected to complete construction of their castor oil-based polyamide plant this year. This plant represents a 50% increase in global polyamide 11 capacity for the company and a new chemistry value chain for Jurong Island.

How do you think Singapore’s climate policy is supporting Singapore’s decarbonisation efforts and the shift towards a carbon trading global economy?

Singapore’s climate policy includes a comprehensive suite of mitigation measures, such as the carbon tax. This will accelerate the economic transformation necessary to ensure the long-term viability of business investments and activities in a carbon-constrained world.

What are the most recent developments towards alternative fuels like hydrogen needed for Singapore’s energy transition?

EDB is in active conversations with E&C companies as well as other emerging technology startups on energy transition projects and opportunities. Most of these initiatives are in pilot stages with potential to scale up in future, and Singapore’s capabilities make us an ideal test bed for research in these areas. EDB is also tapping on research, development and demonstration (RD&D) to achieve further cost reductions, and increase scale, which can help us better understand the technical and regulatory requirements around new energy adoption. In October 2021, US$55 million was awarded to 12 projects under the Low-Carbon Energy Research Funding Initiative to support RD&D in low carbon energy technology solutions. These projects will improve the technical and economic feasibility of implementing low-carbon hydrogen and CCUS solutions. In the private sector, we see local companies Keppel and Sembcorp forming their respective partnerships with companies from Australia and Japan to study and unlock green hydrogen supply to Singapore.

What is your outlook for the Singapore-based chemical industry in light of global pressures – including inflationary pressures, geopolitical instability, and Chinese lockdowns?

The current global pressures are currently putting a pause on large capital investments and forcing companies to reevaluate their global supply chain strategies. However, these companies continue to be fully cognizant that Asia’s growth story of a growing middle class, rapid urbanization, and rising expectations for energy, health and nutrition will persist in the future – in many cases, recognizing the long term impact of climate change and the energy transition.

In this light, we remain confident that Singapore and Sustainable Jurong Island continue to serve as an important E&C innovation and manufacturing hub in Asia for Asia and the rest of the world. In fact, EDB welcomed several companies with strong interest to invest and expand their capabilities here, even during the height of the pandemic. In chemicals specifically, we see opportunity in 4 growth segments - (1) nutrition & agrifood, (2) hygiene & health, (3) smart materials & mobility and (4) sustainability.

These interests are a testimony not only to Singapore’s connectivity and proximity to Asia but also a reflection of Singapore competitive advantages – stability, predictability, innovative spirit and operational excellence. We will leverage on these qualities and capabilities to ensure that our E&C sector is competitive, future-ready from a climate perspective, and ready to ride on the Asia growth story.