SG Budget 2024: Singapore open to nuclear power, plans S$5B Future Energy Fund

SINGAPORE: Deputy Prime Minister and Finance Minister Lawrence Wong has highlighted Singapore’s active exploration of nuclear energy as a potential future source, alongside ongoing studies into other energy alternatives such as hydrogen and geothermal sources.

Speaking during his Budget statement on 16 February, DPM Wong highlighted the rapid advancements in nuclear technology, emphasizing the development of smaller, safer, and more efficient designs.

He expressed the government’s commitment to enhancing its capabilities to evaluate emerging technologies in the nuclear sector and assess the feasibility of nuclear energy deployment in the future.

While discussing the potential of geothermal energy, DPM Wong mentioned the Sembawang hot spring, noting that extensive drilling would be required to determine its viability.

Studies conducted by researchers from Nanyang Technological University revealed the possibility of harnessing geothermal energy near the hot spring, with temperatures reaching up to 200 degrees Celsius at depths of 4 to 5 kilometers.

Singapore has been actively engaging with international organizations such as the International Atomic Energy Agency and collaborating with neighbouring countries to facilitate knowledge sharing and bolster regional capabilities in the energy sector.

New Future Energy Fund

In support of Singapore’s transition towards low-carbon electricity, DPM Wong announced the establishment of a new Future Energy Fund with an initial allocation of S$5 billion.

This fund aims to develop critical infrastructure necessary for the adoption of renewable energy sources such as solar, wind, and hydropower.

Additionally, investments will be directed towards enhancing infrastructure for the generation, storage, and distribution of hydrogen, should the government opt to expand its usage.

Acknowledging the substantial challenges associated with transitioning from natural gas to clean energy, DPM Wong emphasized the need for significant investments, which may require government support.

He underscored the importance of the Future Energy Fund in facilitating timely investments, expediting infrastructure development, and strengthening Singapore’s energy security.

Challenges to achieve net-zero emissions by 2050

DPM Wong emphasized that relying solely on natural gas would not align with Singapore’s goal of achieving net-zero emissions by 2050, particularly considering that the power sector accounts for a significant portion of total emissions.

Given Singapore’s constraints in land availability and limited potential for domestic clean energy production, DPM Wong highlighted the importance of importing low-carbon electricity.

Conditional approval has already been granted for the importation of a substantial amount of low-carbon electricity from Cambodia, Indonesia and Vietnam by 2035.

However, DPM Wong emphasized the need for additional options to decarbonise the remaining energy supply while ensuring energy security.

In 2022, DPM Wong launched the National Hydrogen Strategy, aimed at preparing Singapore for domestic hydrogen deployment and fostering the development of a hydrogen supply chain in Asia.

While acknowledging the challenges associated with hydrogen technology, DPM Wong emphasized the government’s proactive approach in exploring alternatives, such as ammonia, for power generation and bunkering on Jurong Island.