Nuclear power needed to transform Singapore’s industrial economy
SINGAPORE’S grand plan to transform the country from a trading port into a modern industrialised nation began in the 1960s.
As the economy grew, it became clear that more space was needed to support high-value-add industries while meeting society’s needs. Thus, Jurong Island was born. Designed as an integrated petrochemicals hub, it brought together industries such as oil refining, petrochemicals, and chemicals manufacturing.
Jurong Island has played a crucial role in boosting Singapore’s economy by attracting major multinational corporations in the petrochemicals sector.
The integrated nature of the facilities on the island allowed for efficient and cost-effective operations, contributing significantly to Singapore’s position as a key player in the global petrochemicals industry.
Over the years, Jurong Island has undergone continuous development and expansion. The Singapore government has invested in infrastructure and facilities to enhance the island’s competitiveness and attractiveness to international businesses.
It remains a vital component of Singapore’s industrial landscape, contributing to the country’s economic growth and providing a strategic location for companies in the petrochemicals and chemicals sectors. Its development reflects Singapore’s commitment to industrialisation and economic diversification.
At the same time, Singapore is making efforts to rein in energy consumption and carbon emissions. The government has introduced several measures to support this aim.
The Energy Conservation Act, for instance, sets requirements for energy efficiency in certain industries and companies. A carbon tax regime has also been introduced; at the moment it affects top-emitting companies.
Given Singapore’s pledge towards attaining carbon neutrality by 2050, and a global move towards cleaner alternative fuels, there is some concern about the future development and transformation of Jurong Island, and how the island’s industrial economy could remain competitive and attractive.
Would Jurong Island remain relevant on its continued trajectory as a petrochemicals hub, or is there a need to consider potential opportunities for rejuvenation? What might the blueprint look like for transforming the island into a clean chemicals hub serving regional and global customers?
One option is to transform Jurong Island into a hub for clean transport fuels for cars, ships, and planes; and clean industrial fuels and feedstocks.
Singapore is already a successful hub for liquefied natural gas, and has a chance of building on that to become a clean fuel hub.
Clean fuel production technologies are not new, though, and the barrier to entry is not high. It is not difficult for neighbouring countries in Asean to embark on the same strategy, and they probably already have some advantages over Singapore.
Many countries in Asia are already actively exploring the hydrogen revolution. Within Asean, the state of Sarawak in Malaysia has achieved a hydrogen ecosystem that includes green hydroelectricity and public buses running on domestically produced green hydrogen.
The Singapore government is contemplating the use of hydrogen and its carriers – such as ammonia and methanol – as alternative fuels to power the petrochemicals facilities on Jurong Island.
This would, however, require heavy investment in new infrastructure; as well as a regulatory framework to ensure the safe and efficient use, and potential future production, of those clean fuels.
Carbon capture is also in the discussion, especially among the oil majors, as a way of lightening the carbon burden for the hydrocarbon industries. Carbon captured from activities on Jurong Island could be utilised to produce cleaner energy or chemicals.
Yet, there remains an unanswered question about the economic viability of long-term geological storage and the utilisation of the captured carbon dioxide.
Meanwhile, access to affordable, reliable, secure and sustainable carbon-free energy will become key to achieving or maintaining any strategic advantage, especially in attracting future innovative technologies, foreign investments and global talent.
This is part of the reason Singapore has announced a new Future Energy Fund to support the nation’s energy transition.
The deployment of nuclear energy in Singapore is one strategic consideration for the fund, but it faces several execution challenges.
For one, Singapore lacks qualified experts with a track record in scientific and engineering research related to nuclear energy. Nuclear power generation requires a long lead time.
Yet, this option has probably become a necessity for Singapore’s energy transition goals. This is especially so if Jurong Island is to continue playing a vital role in the global ecosystem of green fuels and green chemicals, to maintain our strategic geographical advantage as a clean fuels hub in Asia.
Decisive industrial transformations need to start today because everything we want to build and continue to develop on the main island of Singapore requires reliable, secure and affordable energy.
Looking beyond Jurong Island, what could invigorate the next wave of industrial development and innovation is the creation of an offshore floating multi-utility complex that is both an energy oasis and a reference model for future carbon-free and climate-resilient industrial infrastructure.
Picture it: an industrial park floating at sea; powered by advanced nuclear technology; and producing clean fuels such as hydrogen, ammonia and methanol; as well as potable water and maybe even power for offshore data centres. In addition to addressing land space constraints, this clean energy infrastructure at sea offers opportunities for public-private partnerships to develop climate mitigation technologies and sustainable solutions.
The establishment of the Future Energy Fund underscores the urgency for decisive industrial trans
formations. It is a clear message for public agencies, industry, academic institutions, research centres of excellence, and think tanks to engage and work towards realising Singapore’s future industrial economy transformations.
While Singapore will maintain its portfolio approach to funding science, technology, and innovation projects, it is imperative to elevate the allocation of funding towards nuclear energy initiatives.
Investing in nuclear energy not only brings Singapore a clean and carbon free energy source, but also enables long-term strategic partnership for attracting foreign investments; advancing technology and infrastructure development; further diversifying international trade; and developing local competence.
The 26 years remaining to the national net-zero target amount to a brief period for the development of nuclear energy, especially when compared with the time invested by leading nuclear states such as the United States, Russia, France and China.
Five neighbouring countries – Indonesia, Malaysia, Philippines, Thailand and Vietnam – commenced nuclear research as early as the 1950s, so Singapore has no time to lose.
While there are no shortcuts in nuclear energy development, Singapore could catch up by pooling independent local and international experts, strategic industrial partners, and academic and professional organisations.
While there are no shortcuts in nuclear energy development, Singapore could catch up by pooling independent local and international experts, strategic industrial partners, and academic and professional organisations.