Singapore's vision of becoming a global clean energy hub is on track due to EDB's efforts to cultivate valuable partners and the new R&D activities introduced by the Singapore government.

In an age where climate change threatens the survival of generations to come, the impetus for the development of clean energy is at an all-time high. The world is already seeing the devastating effects; more intense heat waves and severe storms that wreak havoc on homes and communities - examples of extreme weather patterns that leave us at the mercy of Mother Nature's wrath. The added need for energy diversification due to high fossil fuel prices and recent technological advances has also fuelled global interest in clean energy.

In Singapore, environmental awareness has been growing steadily over the last decade, led by the government's efforts to maintain Singapore as a "clean and green city". These efforts include a comprehensive climate change mitigation policy, extensive re-using of water, increasing of recycling rates and the continued introduction of green spaces.

Businesses have also been called to play their part. There are already a number of government agencies involved in the clean energy industry in various ways, including the Agency for Science, Technology and Research (A*STAR), the Building and Construction Authority (BCA), International Enterprise (IE) Singapore, the Singapore Economic Development Board (EDB), the Energy Market Authority (EMA) and the National Environment Agency (NEA).


Singapore-based company, Grenzone Pte Ltd, helps install a solar power system in a village bordering Thailand and Myanmar. The village was previously without electricity.

The BCA Green Mark Scheme was launched in 2005 as an initiative to encourage more environmentally friendly buildings in Singapore. Its objectives are to promote sustainability and raise environmental awareness among developers, designers and builders throughout the conceptualisation, design and construction processes. The BCA Green Mark rating system evaluates a building on its environmental impact and performance, and is endorsed and supported by the NEA. Five key criteria - energy efficiency, water efficiency, project/site development and management, good indoor environmental quality and environmental protection and innovation - determine EDBwhether a building should be awarded the Green Mark. Recently, the BCA has also set up a S$20 million (US$13 million) fund to encourage private sector buildings to achieve the higher Green Mark ratings of Gold, GoldPLUS or Platinum.

Similarly, the NEA's S$20 million (US$13 million) Innovation for Environment Sustainability (IES) fund encourages and assists Singapore-registered companies to undertake innovative environmental projects that could help meet the government's goal of environmental sustainability. Grants of up to S$2 million (US$1.3 million) may be awarded for each project, which should primarily aim to improve the environmental performance of their company.

Paving the way

While such efforts should be lauded, there is still more to be done. Prime Minister Lee Hsien Loong, who chairs the high-powered Research, Innovation and Enterprise Council (RIEC), announced in March 2007 that clean energy has been elevated as a strategic growth area for Singapore, as 2007part of the overall push to develop the Environmental & Water Technologies industry. As a result, a comprehensive blueprint has been drawn up for the nation's clean energy industry, spearheaded by the Clean Energy Programme Office (CEPO) that draws upon the resources of multiple government agencies including EDB, EMA, BCA, NEA and A*STAR.

The government has committed S$350 million (US$228 million) to develop Singapore as a global clean energy hub over the next five years, including S$170 million (US$111 million) from the National Research Foundation (NRF). While the main emphasis is on solar power, the industry development efforts will also extend to fuel cells, wind power, tidal power, energy efficiency and carbon services. It is expected that value-added of S$1.7 billion (US$1.1 billion) and 7,000 new jobs will be created by 2015.


Photo by SolarWorld AG

CEPO plans to grow the clean energy industry in Singapore by focusing on cluster development, technology development and internationalisation. In cluster development, it already has in place measures to attract major international companies, groom local companies to be world-class players, and proliferate start-ups in this industry. This is aided by technology development where some of the initiatives include competitive funding to boost R&D capabilities and building world-class R&D centres.

Says Lee Hsien Loong, Prime Minister of Singapore and Chairman, RIEC, "To transform Singapore into a knowledge-intensive economy, we have to build up our capabilities, enhance our competencies in existing technologies, and seek out promising new areas. This means strengthening our human capital in R&D by grooming local research talents and attracting top-rate scientists to work here. They will raise Singapore's profile as a vibrant centre for R&D and technological applications."

CEPO aims to make Singapore a global test-bed and site for early adoption of clean energy products and solutions. Singapore also recognises that it is people who drive the industry - so it will groom talent and manpower for the industry. In internationalisation, it will pursue the export of clean energy solutions by Singapore-based companies.

Such efforts will complement clean energy investments in areas such as solar, fuel cells and wind already secured in the past two years. These include the establishment of a world-class R&D centre for wind energy by Danish wind energy company Vestas; the opening of German solar company SolarWorld's regional headquarters; the investment of S$153.9 million (US$100 million) by Rolls-Royce to conduct fuel cell R&D with local agencies like A*STAR; and the set up of Singapore's first solar cell manufacturing plant by local company, Solar Energy Power.


Photo by Vestas Wind Systems A/S

Contributing to the world

The plans put in place by the Singapore Government, and the continued partnership between the EDB and the clean energy companies, put Singapore on track to becoming a global clean energy hub. Various factors also come into play to champion this ideal; Singapore's strong electronics, chemicals and precision engineering capabilities as well as mass manufacturing know-how, which in turn increase economies of scale and reduce manufacturing cost, are valuable pluses.

At the same time, Singapore has a good track record when it comes to process automation expertise, an extensive supplier base, and a strong intellectual property protection regime - key considerations in an industry where new technologies are constantly being developed. Singapore is also well-positioned to serve the solar market in Asia, with countries such as India, Indonesia and Philippines home to an estimated 1 billion people without access to grid-connected electricity. And her connectivity to the region will help Singapore-based companies meet the huge demand for solar products.

Edwin Khew, Nominated Member of Parliament, and CEO and MD, IUT Global Pte Ltd, an environmental waste management company, is confident that the IUT group can be a valued partner, and a small but significant part of the solutions required to meet the global call to mitigate climate change. IUT is establishing a highly efficient bio-methanisation plant using proprietary technologies, including the patented ADOS (Anaerobic Digestion of Organic Slurry) process to generate energy, produce high quality compost and reduce food waste entering incineration plants.

Khew, also Chairman of the Sustainable Energy Association of Singapore, says, "IUT believes that our role is to create a leadership position globally on the suite of technologies that we own. Through the plant in Singapore, we will be actively marketing our capabilities throughout the region, and our strategy is to find good local partners in each Asian country where we can develop and construct similar plants. If Singapore grows to be a centre for clean energy solutions, IUT plans to provide physical infrastructure to house all such businesses and R&D into a centre for clean technologies."

Companies such as Vestas and Solar Energy Power also believe Singapore has what it takes to be a leader in the emerging clean energy industry. "Singapore's good economic and political stability and communications infrastructure will instil a lot of confidence in worldwide partners and collaborators," says Dr Freddy Goh, Managing Director, Solar Energy Power.