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Anticipating continuous domestic growth in electricity demand, Singapore plans to add two more natural gas hydrogen-compatible power plants by 2030 to ensure stable and secure power supply. Each generating unit is expected to have the capacity of at least 600 MW, capable of powering around 864 thousands of four-room flats annually. The country’s Energy Market Authority (EMA) has invited private sector to undertake the construction, and operation of these power plants.
Singapore to build and upgrade natural gas power plants to run with 30% hydrogen content this year
Traditional natural gas power plants can reduce their carbon emissions by co-burning hydrogen gas. Starting from this year (2024), EMA also requires that all new and upgraded power plants to be 10% more carbon efficient and able to run with 30% hydrogen content. In the future, these plants also must be able to shift to running fully on hydrogen.
By 2030, the country will have at least 9 natural gas hydrogen-compatible power plants, generating over 3.7 GW of electricity. This includes four plants expected to start operation in 2025, built by Singapore's PacificLight and Meranti; other projects such as Keppel's Sakra Cogen plant and YTLPowerSeraya's initiatives are also planned. And Sembcorp’s plants to come online between 2026 and 2027.
Hydrogen co-burning technology has high cost, but it offsets the cost of carbon taxs
Currently, 90% of Singapore’s electricity comes from natural gas. The country’s electricity demand has been increasing over the past few years, mainly driven by advanced manufacturing, the digital economy, and the transport sectors. With the development of these electricity-intensive sectors, it’s estimated that electricity demand will continue to grow by at least 3.7% over the next six years, reaching between 10.1 GW and 11.8 GW by 2030.
While the upfront construction costs of hydrogen-compatible natural gas power plants are higher than traditional natural gas plants, David Broadstock, head of energy transition research at the Institute of Sustainable and Green Finance, National University of Singapore, believes that "as carbon taxes continue to rise, the cost of using only natural gas will also increase. Using hydrogen blends can help offset some of these costs."
Source: Straits Times, Menafn
