SINGAPORE: Singapore will launch a S$143 million (US$112 million) initiative as part of efforts to decarbonise its manufacturing industry.

The Industry Decarbonisation Funding Initiative will support the development of technologies that show the most promise in addressing key challenges that Singapore’s industries face in decarbonisation, said Deputy Prime Minister Gan Kim Yong on Friday (Oct 23).

Announcing the initiative at the Singapore Industry Decarbonisation Forum, Mr Gan said manufacturing contributes around 20 per cent of Singapore's gross domestic product and employs an eighth of its workforce.

"As we move towards a low-carbon future, we must help our industries make the transition successfully, so that they can continue growing and providing good jobs," said the Deputy Prime Minister, who is also Minister for Energy, Trade and Industry (Trade).

He noted that industries account for around 65 per cent of Singapore's emissions, including emissions from the electricity they use.

Reducing these emissions significantly is essential for Singapore to achieve its net-zero target by 2050, he said.

"But we must also keep these industries competitive while decarbonising them." Mr Gan noted that Singapore's limited land and renewable energy resources, coupled with the complex operating requirements of its industries, made decarbonisation challenging. Low-carbon technologies that work elsewhere may not always be suitable for Singapore, he added.

ALLOWING COMPANIES TO SHAPE RESEARCH The S$143 million initiative is part of the S$800 million Decarbonisation Grand Challenge (DGC) which supports the innovation of promising technologies from the research and development phase to translation, scale-up and demonstration.

Up to S$100 million of the new initiative will be set aside for a programme called Decarbonisation Research for Industry, Ventures, and Enterprise (DRIVE), giving companies a direct role in shaping research.

Under DRIVE, companies will take the lead in defining the decarbonisation challenges they want solved.

"They can tap on Singapore's deep research capabilities to co-develop solutions, with DRIVE co-sharing the research and development investment to take promising ideas further," said Mr Gan Applications for the programme open on Friday.

Singapore is also working with climate and clean energy investors and accelerators to identify promising technologies and connect innovators with funding programmes.

FUNDING FOR FIVE PROJECTS Five projects previously supported under Singapore's Low Carbon Energy Research programme will receive follow-on funding under a S$65 million grant call to scale up their technologies and test them in real-world industrial settings said Mr Gan. "This second phase will build on strong outcomes from the earlier research," said Mr Gan.

"These trials will allow researchers and companies to assess how the technologies perform in actual operations, and what further improvements are needed before wider deployment," he added.

Singapore is also developing shared infrastructure to help companies test and scale low-carbon technologies without having to build their own costly pilot facilities The S$62 million Low-Carbon Technology Translational Testbed on Jurong Island, hosted at A*STAR's Institute of Sustainability for Chemicals, Energy and Environment, will provide facilities for testing technologies under industry-relevant conditions.

Construction is underway, and its first three industry users – IHI Corporation, Amogy and Metha8 – have been secured, Mr Gan said.

Through research collaborations with A*STAR, IHI will work on converting carbon dioxide into sustainable aviation fuel while Amogy will work on producing hydrogen from ammonia. Metha8 will work on an integrated methanol-to-power system, added Mr Gan.

"These projects will advance different technology pathways that could help address Singapore's industrial decarbonisation needs," said the Deputy Prime Minister.

The testbed will support their progress towards demonstration and commercial deployment, he added.

THREE COMPANIES APPROVED TO IMPORT BIOMETHANE Mr Gan also announced that Keppel Energy, Sembcorp Utilities and Tuas Power Generation had been approved as aggregators to import and supply biomethane into Singapore.

Biomethane is a renewable gas produced from organic waste that can be used as a low-carbon alternative to natural gas. It is also compatible with Singapore's existing gas infrastructure.

The appointments are part of the government’s next steps after establishing a regulatory sandbox last year to work through the supply chains, commercial arrangements and regulatory framework needed for the gas’ adoption.

"The sandbox will help pave the way for wider biomethane adoption, supporting up to 300 megawatts of capacity from 2028," said Mr Gan.

The Decarbonisation Grand Challenge was announced earlier this year as the government stepped up efforts to meet its 2035 abatement target and 2050 net-zero ambition.

Another S$800 million package to establish a Research, Innovation and Enterprise flagship in semiconductors was also announced at that time.

On the built environment front, Singapore said last month that it was investing S$112 million in research and innovation to improve productivity and sustainability.