Singapore injects initial $5b in Future Energy Fund

The natural gas-reliant country is setting up its second LNG terminal.

Deputy Prime Minister Lawrence Wong said the government is investing an initial amount of $5b for the Future Energy Fund to support the country’s energy transitions.

“This will give us the confidence to invest in good time, put us in a better position to move quickly in critical infrastructure and enhance our security in clean energy,” Wong said in his budget speech.

Wong noted that Singapore is heavily reliant on natural gas, which is the cleanest form of fossil fuel. Singapore is planning to establish a second liquified natural gas terminal to meet the growing electricity demands.

However, this will not support the country’s goal to achieve a net-zero target by 2050.

Singapore also lacks natural resources for wind and tidal power and faces land constraints to deploy solar power plants.

The country is exploring other clean energy resources such as hydrogen which is still nascent and costly. Wong said the country will start by testing and deploying hydrogen-carrier ammonia for power generation and bunkering on Jurong Island.

Wong also said that they are studying the potential for geothermal energy in the country, amongst other initiatives.