Singapore appoints Keppel Energy, Sembcorp Utilities and Tuas Power Generation for Southeast Asia’s first biomethane import pilot

This press release was issued by Singapore Economic Development Board (EDB).

1. The Singapore Economic Development Board (EDB) has appointed three generation companies — Keppel Energy, Sembcorp Utilities and Tuas Power Generation — as biomethane aggregators under Singapore’s 300MW regulatory sandbox to import and supply biomethane, a renewable alternative to natural gas. The initiative, the first of its kind in Southeast Asia, will help Singapore explore biomethane as a decarbonisation pathway and pave the way for its wider adoption.
2. The sandbox will test the commercial, regulatory and operational arrangements needed for biomethane imports, helping to shape the frameworks for the wider adoption of biomethane. It will run for 15 years, with appointees expected to bring in their first biomethane supplies by end-2028. Under the sandbox, the generation companies will import biomethane of up to 300MW from regional and international sources and supply it to data centres and industrial manufacturers in Singapore, either as biomethane gas or as biomethane-derived electricity. This capacity can supply the energy needs of around 600,000 HDB households annually.
3. Biomethane is a renewable, low-carbon gas produced by upgrading biogas from organic waste sources such as food waste, agricultural residue, animal manure and sewage sludge. This process yields a gas that is chemically identical to fossil-derived methane — the main component of natural gas.
4. Unlike many emerging low-carbon fuels, biomethane is a direct drop-in replacement for fossil natural gas, as it can utilise existing gas infrastructure and be consumed without modifications to equipment or industrial processes. This makes it one of the most practical near-term decarbonisation options available.
5. With natural gas accounting for around 95% of Singapore’s electricity generation, biomethane offers a feasible pathway to reduce emissions from the power sector and heavily gas-dependent industries.

6. Beyond reducing emissions, the sandbox will help enhance Singapore's energy security and resilience by diversifying its sources of gaseous fuel beyond conventional fossil natural gas. This aligns closely with Singapore's broader decarbonisation strategy by accelerating the development of supply chains, commercial models and sustainability standards that could support the wider deployment of biomethane in the market.
7. The appointments follow a closed call for proposals launched in September 2025 to demonstrate and test biomethane's potential for power generation and industrial applications.