Why Singapore is building hydrogen-ready power plants
A strategy to tackle severely underdeveloped hydrogen supply chain.
Why is Singapore moving towards net zero by building multiple hydrogen-ready power plants?
PacificLight Power will build a 600MW hydrogen-compatible power plant on Jurong Island that will begin operations in 2029, according to the ST.
Why not jump straight into hydrogen - a clean fuel, and transition to clean energy immediately?
The problem with hydrogen
The main problem is the hydrogen supply chain, which is severely underdeveloped today.
Some might say it doesn't really exist at this point; everything must be built from scratch:
- Hydrogen production*.
- Storage infrastructure.
- The vessels to transport it.
- Receiving, regasification facilities.
- End-users for the hydrogen.
*Most green hydrogen projects are still in the early stages - there is just 16 GWe of green hydrogen capacity at final investment decision globally as of Dec 2024.
Moreover, hydrogen's low volumetric energy density means a lot must be transported to make economic sense. And it's transported as a liquid, which requires specialised processing and storage infrastructure.
A gradual transition
Instead of doing a wait-and-see, Singapore's strategy is to do a gradual transition by building hydrogen-ready power plants first.
- Start with 30% hydrogen & 70% natural gas mix.
- Switch to 100% hydrogen eventually.
- Build 9 hydrogen-ready plants by 2030.
According to the ST, all new and repowered natural gas power plants are at least 30% hydrogen-compatible since 2024.
Complex route to net zero
Due to various inherent limitations including very limited renewables, Singapore faces an extremely challenging and complex route to net zero.
From what I've observed, there are multiple plans:
- Replace natural gas with hydrogen, ammonia.
- Blanket island with solar, including on reservoirs.
- Establish itself as a hub for renewable electricity.
- Enhance efficiency of key sectors such as data centres.
And yes, if you seem to be seeing more roadworks, it's not your imagination.
A multi-year effort is underway to upgrade the existing power grid, which was designed and built at a time before EVs and renewables.
