Keppel, Sembcorp among firms inking deals on hydrogen, green ammonia

The MOUs follow recent announcements by the Government that hydrogen could possibly play a key role in helping Singapore meet its net-zero emissions targets by 2050. ST PHOTO: KEVIN LIM

SINGAPORE - The move to decarbonise Singapore’s energy needs is gathering pace.

A number of agreements were signed on Tuesday for the production and supply of the low-carbon fuel hydrogen and green ammonia, which is used to transport hydrogen and can be used as a fuel in shipping.

The memorandums of understanding (MOUs) follow recent announcements by the Government that hydrogen could possibly play a key role in helping Singapore meet its net-zero emissions targets by 2050.

Sembcorp signed three new agreements with three Japanese firms – the Japan Bank for International Cooperation, conglomerate Sojitz Corp and engineering firm IHI Corp – focusing on areas such as green hydrogen production and establishing ammonia supply chains.   

The deals were signed on Tuesday on the sidelines of the Singapore International Energy Week conference, which is being held at Marina Bay Sands.

Mr Wong Kim Yin, group president and chief executive of Sembcorp Industries, said the agreements will enable Sembcorp to access and leverage Japan’s highly advanced technology in hydrogen development and deployment. 

“By establishing all these different supply chains and MOUs, we can start harvesting (hydrogen) by 2028... by 2030, start scaling up production, and then by 2035 or 2040, we can start moving the needle for decarbonising Singapore,” said Mr Wong.

He added that many of these hydrogen projects have already been operating on a small scale, and hopes that collaborations with Singapore can help scale them up.

He said Sembcorp’s partnership with IHI could see Singapore importing its turbines to burn ammonia directly. In addition, partnerships with trading firms such as Mitsubishi could help Singapore bring in green ammonia from overseas.

Hydrogen, which releases little to no greenhouse gases when burned, can be used as a low-carbon fuel or feedstock – the raw material needed to fuel a machine or industrial process.

When produced through the electrolysis of water using renewable energy, where water is split into hydrogen and oxygen, hydrogen could also have close to zero emissions.

There are different ways to transport hydrogen, which releases little to no greenhouse gases when burned, such as by using ammonia as a carrier or by liquefying hydrogen. The gas can also be transported at ambient temperatures by using liquid organic hydrogen carriers.

In a separate deal, Keppel Infrastructure on Tuesday signed an agreement with Indian renewable energy company Greenko to explore the feasibility of jointly developing a production facility in India that can produce at least 250,000 tonnes of green ammonia a year.

To power the green ammonia production facility, both companies will evaluate a portfolio of solar and wind energy projects, up to an installed capacity of approximately 1.3 gigawatts, which is more than enough energy to power 750,000 homes.

Renewable energy can be used to produce green ammonia through electrolysing water, which creates green hydrogen, and by adding nitrogen from the air.

Mr Wong said Sembcorp’s partnership with IHI could see Singapore importing its turbines to burn ammonia directly. In addition, partnerships with trading firms such as Mitsubishi could help Singapore bring in green ammonia from overseas.

  • Additional reporting by Shabana Begum

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