Three power firms get co-funding to study carbon capture, storage to help Singapore decarbonise

SINGAPORE – Three power generation companies will conduct carbon capture and storage (CCS) feasibility studies to help Singapore transition to a low-carbon future.

The three companies are Keppel, PacificLight Power and YTL PowerSeraya, said the Energy Market Authority (EMA) on July 14. Five of their proposals have been selected to receive co-funding, and the studies must be completed by Jan 31, 2026.

In response to queries from The Straits Times, EMA said it will provide grants to support the costs of the feasibility studies, subject to a maximum of $350,000 per project.

They will study two pathways of capturing carbon in the power sector to remove carbon emissions.

The first method involves installing an on-site unit to capture carbon dioxide (CO2) from exhaust gas after natural gas has been burned. The waste gas typically contains CO2, water vapour, nitrogen and oxygen.

The other technique involves capturing the CO2 generated when hydrogen is produced from natural gas.

The hydrogen can be burned to generate electricity and does not produce any CO2 during the combustion.

EMA had issued a grant call in October 2024 to study two methods of deploying CCS technologies in the sector to remove carbon emissions and store them in deep underground structures as part of Singapore’s energy transition to a low-carbon future.

Singapore is taking steps to study how planet-warming CO2 from natural gas power plants can be captured and locked away, as it is likely to continue relying on fossil fuels over the next few decades.

Natural gas is expected to continue to power more than 50 per cent of the nation’s energy needs by 2035.

Currently, it contributes more than 90 per cent of the electricity mix.

The energy sector accounts for around 40 per cent of Singapore’s greenhouse gas emissions.

ST has reported that research is under way to determine the most cost-effective way of capturing CO2 as it tends to be emitted in diluted concentrations, making capture difficult.

Carbon capture technology is expected to be among the key measures for Singapore to cut emissions and meet its 2030 climate targets.

In the biennial transparency report Singapore submitted to the UN in November 2024, capturing carbon is one of three mitigation measures that stood out for having the highest abatement potential, or potential to reduce the nation’s greenhouse gas emissions, by 2030. The report mentioned more than 10 mitigation measures.

The report said the carbon capture, utilisation and storage technology, which sucks carbon dioxide from polluting sources and locks it away, can help to remove up to an estimated 2,500 kilotonnes of CO2 equivalent – akin to about 20 per cent of the total emissions reductions – by 2030.

The findings of the feasibility studies will allow EMA and the power generation companies themselves to deepen their knowledge and understanding of the power sector’s CCS pathways, as well as identify infrastructure and site-specific requirements, said EMA.

It added that the findings will also be a useful foundation for more detailed engineering studies in the future to further assess the feasibility of CCS to decarbonise the power sector.