Understanding hydrogen in Singapore

Information correct as of September 2025

Authors: Andrew Digges and Nick Merritt

• Market Overview
• Projects and initiatives
• Development and support regime
• Opportunities and challenges

Market Overview

Singapore launched its National Hydrogen Strategy on 25 October 2022. The Singapore government believes that low-carbon hydrogen has the potential to be a major decarbonisation pathway to support Singapore's accelerated transition towards net zero by 2050, while strengthening its energy security and resilience. It foresees low-carbon hydrogen playing an important role in:

(a) decarbonising its power sector;

(b) serving as a pathway for mitigating industrial emissions and enabling sustainable production; and

(c) acting as a key decarbonisation solution for the maritime and aviation sectors.¹

Low-carbon hydrogen would play an important role in decarbonising Singapore's power sector given Singapore's limited ability to generate renewable energy domestically, potentially meeting up to 50 percent of Singapore's projected electricity demand by 2050.²

Low-carbon hydrogen also serves as a pathway for mitigating industrial emissions and enabling sustainable production by:

(a) acting as a feedstock for multiple industrial processes (such as biofuels and synthetic fuels); and

(b) presenting an option for the industry to decarbonise heat, power and steam generation by replacing fossil fuels in burners and co-generation plants.³

As a key decarbonisation solution for the maritime sectors, hydrogen-based fuels such as ammonia are expected to play a prominent role in the sector's multi-fuel transition, and Singapore is working with industry and international partners to study ammonia's potential as a marine fuel. While as a key decarbonisation solution for the aviation sector, low-carbon hydrogen can contribute to the production of sustainable aviation fuels, be used in fuel cells for airside ground vehicles and aircrafts, and in the longer term possibly directly as a fuel.⁴

Projects and initiatives

Some of the projects and initiatives that Singapore has undertaken and are ongoing are as set out below:

Launched the Low-Carbon Energy Research (LCER) Funding Initiative in 2020- In the first phase of the programme in 2021, Singapore, through the initiative, awarded S$55 million to projects aiming to improve the technoeconomic viability of low-carbon technologies that, apart from carbon capture, utilisation, and storage, included hydrogen. In relation to hydrogen, the LCER funded projects in areas such as the development of catalysts for ammonia cracking and methane pyrolysis. Singapore had also set aside an additional S$129 million of research funding under LCER to support the development of low-carbon technologies including hydrogen.⁵ Additionally, under the second phase of the LCER initiative, S$43 million has been awarded to six projects under the 'Directed Hydrogen Programme' to build capabilities in Singapore to utilise hydrogen safely and economically.⁶

Cross border collaborations with like-minded countries that are keen to advance the development of hydrogen as a global decarbonisation pathway, on areas such as building up hydrogen supply chains, certification schemes, and joint research and development efforts:

• With Australia:
  • In 2022, Singapore and Australia signed a Green Economy Agreement that includes cooperation on hydrogen and ammonia, maritime decarbonisation, and certification standards including Guarantee of Origin schemes. This builds upon the previous memorandum of understanding signed in 2020 that covered hydrogen production among other agreed collaborations.⁷
• With New Zealand:
  • In July 2021, a formal 'Arrangement of Cooperation' was signed between Singapore and New Zealand to collaborate on hydrogen production, deployment and research and development. This builds on the broader 'Singapore-New Zealand Enhanced Partnership' signed in 2019.⁸
• With Chile:
  • On 15 February 2021, Singapore and Chile signed a memorandum of understanding (which is renewable after five years) for collaboration on low-carbon hydrogen technologies and that will foster cooperation between Singapore and Chile on projects and initiatives to advance the deployment of hydrogen as an alternative energy source.⁹

Maritime and Port Authority of Singapore's (MPA) actions to ensure that Singapore is an early mover in Singapore's transition to ammonia bunkering:

(a) The MPA is working directly with various industry consortia to study the feasibility of ammonia as a bunkering fuel and to accelerate its deployment in international shipping.

(b) The MPA is collaborating with stakeholders to define safety and operational envelopes that will be used to facilitate a regulatory sandbox for ammonia bunkering trials.

(c) The MPA is also investing in industry enablers that can help build up capabilities in the maritime sector and facilitate its transition to a low-carbon future and studying the support infrastructure to train seafarers.

(d) The MPA is working to establish green and digital corridors with like-minded ports and countries to build low-carbon marine fuel supply chains, conduct joint bunkering pilots and trials, develop bunkering infrastructure and realise sustainable vessel sailing.

(e) Singapore has, together with six other founding partners, also set up the Global Centre for Maritime Decarbonisation (GCMD) as a non-profit organisation based in Singapore to advance maritime decarbonisation.¹⁰

Studies to develop a framework or laws and policies- In August 2024, Singapore's Energy Market Authority (EMA) called for a study to develop a framework of laws and policies, including in areas such as hydrogen imports, the ownership and operation of hydrogen infrastructure and incentive and financing schemes. This study would be beneficial in Singapore's endeavours in the hydrogen space, as it would help pave the way for Singapore's adoption of hydrogen by providing inputs to future policy, legislation and regulatory development in this area.¹¹

Ammonia Power Generation and Bunkering Project on Jurong Island- In July 2024, the EMA and the MPA had shortlisted two consortia that will proceed to the next round of evaluations of proposals to provide a low- or zero-carbon ammonia solution on Jurong Island for power generation and bunkering. The two consortium leads are Keppel's Infrastructure Division and Sembcorp-SLNG, and the bunkering players in these consortia are Itochu Corporation, Nippon Yusen Kabushiki Kaisha (NYK Line) and Sumitomo Corporation. The next phase would involve EMA and MPA selecting one of the two bidders as the lead developer of the project. The lead developer will then develop the end-to-end ammonia solution comprising:

(a) generating 55 to 65 MW of electricity from imported low- or zero-carbon ammonia via direct combustion in a Combined Cycle Gas Turbine; and

(b) facilitating ammonia bunkering at a capacity of at least 0.1 million tons per annum, starting with shore-to-ship bunkering followed by ship-to-ship bunkering.¹²

Development of Keppel Sakra Cogen 600MW Plant-- The new hydrogen-ready power plant, targeted to be ready by first quarter of 2026, is being constructed on Jurong Island by a consortium involving Mitsubishi Power and Jurong Engineering. It will have about a 10 percent lower carbon footprint than conventional power plants (which equates to savings of 220,000 tonnes per year of carbon dioxide emissions) and can operate on fuels with 30 percent hydrogen content (which can be enhanced in the future). The plant, utilising the new generation of combined cycle gas turbines (CCGTs), provides not only electricity but also general utilities such as steam, which can be used to power turbines, or sold to other industry players when needed.¹³

Other upcoming developments and call for proposals:

• Development of YTL PowerSeraya (YTLPS) 600MW hydrogen-ready combined cycle gas turbine plant on Jurong Island, expected to be commissioned by end 2027. The plant will start off with a capacity to use up to 30 percent hydrogen which could be retrofitted to become 100 percent hydrogen-ready in the future.¹⁴
• Collaboration with Private Sector - On 4 June 2024, the Energy Market Authority (EMA) of Singapore's invited the private sector to build, own, and operate two new power plants to be up and running in 2029 and 2030, with each plant expected to have a capacity of at least 600MW.¹⁵

Development of Hydrogen in International Aviation, Role of Hydrogen in Singapore's aviation sector and Sustainable Aviation Fuel (SAF):¹⁶

• In February 2022, the Civil Aviation Authority of Singapore (CAAS) signed a 'Cooperation Agreement' with Airbus, Changi Airport Group and Linde to study the development of hydrogen supply and infrastructure for aviation. Under the Cooperation Agreement, the four parties will collaborate to conduct market analysis on the projected aviation demand and supply for hydrogen, as well as regional readiness and commercial feasibility for the adoption of hydrogen. The parties will also evaluate the infrastructure requirements for a hydrogen airport hub and the electrification of airport operations using hydrogen fuel cells. Where deemed suitable, the parties are open to pursuing industry trials.
• In the near team, low carbon hydrogen is expected to play a part an important role in supporting the production of SAFs which Singapore has started tapping on in relation to its aviation sector. In July 2022, the CAAS, Singapore Airlines (SIA) and Temasek embarked on a pilot where blended SAF (a blend of regular jet fuel and SAF produced by Neste, a Finnish energy giant)¹⁷ was uplifted onto SIA and Scoot flights departing from Changi Airport for the first time. In 2023, Neste expanded the capacity of its Tuas South refinery,¹⁸ which boasts an annual production capacity of 1 million tonnes, making Singapore home to the world's largest production plant for SAF.

Development and support regime

Singapore's National Hydrogen Strategy 2022- To advance the transition, Singapore has adopted a strategy which focuses on progressively building capabilities in industry, workers and the Government in areas that are critical to unlocking hydrogen adoption in Singapore, and have looked to organise its efforts around five key thrusts:¹⁹

• Experimenting with the use of advanced hydrogen technologies at the cusp of commercial readiness through pathfinder projects:
  • Each pathfinder project is envisioned to start with a solicitation of proposals and ideas from the industry (such as through an Expression of Interest and/or a Request for Proposal), to uncover the level of interest and capabilities from Singapore's industry players. Ideally, the projects should be implemented with close partnership between the selected industry partner(s) and the Government to facilitate the co-creation of solutions to regulatory and infrastructure related challenges.
  • As a start, Singapore will build capabilities in importing, handling, and utilising low-carbon ammonia as a hydrogen carrier or directly as a fuel in power generation. The ammonia supply chain development efforts undertaken through this project will also support marine bunkering needs.
• Investing in research and development to unlock key technological bottlenecks:
  • This capitalises on Singapore's strong base of research and development capabilities and a vibrant innovation ecosystem with strong academia industry linkages to further explore and develop the hydrogen value chain, in areas such as the development of catalysts for ammonia cracking and methane pyrolysis.
  • A directed approach is adopted in deciding which hydrogen related technologies to direct research and development towards.
  • As Singapore will be a net hydrogen importer, it has prioritised being able to import, store, handle, and utilise hydrogen (and all carrier forms deemed suitable for Singapore) safely, economically and at scale.
  • For the mid-stream segment of the value chain, Singapore has identified potential research and development areas that include ammonia cracking to liberate hydrogen, where Singapore aims to improve the efficiency of the process, reduce cost, and find ways to scale with minimal land footprint. Singapore also is looking to examine areas to improve the economics of transporting and storing liquefied hydrogen, which has yet to be carried out for large volumes and over long distances.
  • For the downstream segment, Singapore looks to build up its research and development capabilities in areas required for the use of hydrogen and focus on areas where the industry or regulatory bodies do not have existing solutions, given Singapore's unique operating context (e.g., dense urban population, high humidity). The focus would be on managing hydrogen and ammonia deployment safely, setting up new operating standards and regulatory frameworks and research efforts to develop new processes and materials to handle and utilise hydrogen and its carriers.
• Pursuing international collaborations to enable supply chains for low-carbon hydrogen:
  • Singapore is looking to focus on three key areas:

(a) building a trading and financing ecosystem for low-carbon hydrogen to support the development of a global trading market;

(b) advancing the development of Guarantee of Origin certification methodologies, and ensuring that methodologies are interoperable across jurisdictions to facilitate cross border trade; and

(c) supporting research collaborations to unlock common technological challenges.

• Undertake long-term land and infrastructure planning:
  • New infrastructure that includes import and storage facilities, distribution networks and infrastructure for new end-use applications such as power generation units and bunkering jetties will need to be built.
  • Singapore, though, does not expect to build up significant infrastructure in the near term due to the nascency of the hydrogen supply chain. Nevertheless, Singapore will be undertaking careful land planning, including the consideration of possible offshore solutions, given the significant footprint of the supply chain.
• Supporting workforce training and development of our broader hydrogen economy:
  • The Government is looking to work with the industry, unions and the education sector in relation to the upskilling and reskilling of its workforce, particularly for those in the energy & chemicals, chemicals storage, marine bunkering, power generation and aviation sectors.
  • Given that Singapore is an international financial, business and trading hub, it stands in good stead to grow as a hydrogen services hub. Singapore will be looking to capitalise on this, as well as maintaining its efficient business infrastructure and strong innovation ecosystem to keep its economy attractive to global companies establishing hydrogen related business units in Singapore.

Opportunities and challenges

Opportunities

Opportunities in ammonia bunkering and supporting international maritime decarbonisation- Given that Singapore is a maritime hub, a global port and the world's largest bunkering hub, the application of ammonia as a maritime fuel would provide Singapore with great opportunities to further the sustainability cause in the area of ammonia bunkering. This is an area that Singapore has acknowledged and will also seek to capitalise on.²⁰

Hydrogen's role in the aviation sector and Sustainable Aviation Fuel (SAF)- As mentioned, in the near team, low carbon hydrogen is expected to play an important role in supporting the production of SAFs. In the medium term, hydrogen fuel cells could be used for airside ground vehicles and aircraft propulsion. In the longer term, hydrogen, in the form of liquefied hydrogen, could be a potential fuel source for hydrogen-powered aircraft.²¹ Given that Singapore is one of the leading aviation hubs in the world, it could be the catalyst for the global transition towards greener aviation.²²

Hydrogen Fuel Cell electric vehicles- While battery electric vehicles (BEVs) are still expected to be the more cost-effective and cleaner energy vehicle technology than Hydrogen Fuel Cell electric vehicles (FCEVs) in the short term, this could change by 2050, by which stage FCEVs might prove to be more economically viable than BEVs in the heavy vehicle segment.²³ Given the global push towards electric vehicles and Singapore's Singapore Green Plan 2030 target of having all vehicles on Singapore's roads running on cleaner energy (which includes electric, hybrid and hydrogen fuel cell vehicles) by 2040, ²⁴ the FCEVs area is one where Singapore certainly has scope for development.

Challenges

Ammonia production, transportation and storage (as hydrogen carriers) and end use applications of ammonia:

• In relation to power generation, small-scale direct ammonia-fuelled power generation gas turbines are expected to be only commercially available by around the middle of this decade. As it is a new technology, its operating parameters and protocols will need to be established, and its safety and efficiency ascertained for Singapore's context.
• While the creation of ammonia (by combining hydrogen with nitrogen) would facilitate easier transportation,²⁵ improvements would need to be made in the scale and efficiency of the cracking technology utilised²⁶ to crack ammonia back into hydrogen to be combusted in power generation gas turbines, given that doing so is energy intensive and costly using current technology.²⁷

High cost of deployment:

(a) As Singapore expects to have to import most of its low-carbon hydrogen, Singapore's cost of deployment of low-carbon hydrogen, specifically for power and the industrials sector, will likely be higher than that for countries that have the ability to produce low-carbon hydrogen domestically.²⁸

(b) Additionally, there are also costs concerns related to the construction or retrofitting of infrastructure such as pipelines to transport hydrogen.²⁹

(c) Global supply chains for low-carbon hydrogen have yet to develop, and key technologies that support the transportation of liquefied hydrogen and reconversion of hydrogen carriers are either nascent, or have yet to demonstrate scale.³⁰ In relation to this, there are also room for improvement as to current storage technologies which might lead to substantial boil-off losses when transporting liquified hydrogen.³¹

Regulatory and safety standards and innovation, and long term land and infrastructure planning- Singapore will also have to ensure that proper processes and regulations are in place so that the land footprint (the amount of physical land area required to support the infrastructure needed for importing, storing, processing, and distributing ammonia as part of the hydrogen ecosystem) for the ammonia supply chain can be reduced without compromising safety for a densely populated urban city like Singapore. In relation to safety, there will be concerns with the use of ammonia as a marine fuel in ships, the use of ammonia as a direct fuel for power generation and the use of hydrogen directly in aircrafts.³² Proper land use planning and necessary revisions by the Urban Redevelopment Authority of Singapore will also have to be considered to take into account Singapore's endeavours in the hydrogen space.³³ It would be crucial for Singapore to balance its land scarcity constraints, safety concerns and sustainability goals.

Development of standards in the cross-border trading of low carbon hydrogen- Global low-carbon hydrogen market is still nascent as cross border trading of low-carbon hydrogen by sea has yet to be established. Thus low-carbon hydrogen trade could be impeded if there is no international set of standards or certification methodologies that can credibly verify the emissions intensity of the hydrogen produced.³⁴

Liquified hydrogen as a fuel source for hydrogen-powered aircraft- Hydrogen, in the form of liquefied hydrogen, as a fuel source for hydrogen-powered aircraft would face several challenges such as on-board storage, safety concerns due to the highly flammable nature of hydrogen, cost of fuel production and airport infrastructure.³⁵

Footnotes