In Singapore, industry has the highest share in primary energy demand, 36.5% in 2019. It has grown at an annual rate of 5.3% since 2005. Singapore’s industrial sector accounts for 41% of its emissions, 10% of which comes from process related emissions. Electricity demand in industry is also steadily increasing since 1990 and in 2019 it reached 38%. Share of electricity in industrial energy mix is 24% in 2019, and would need to be around 35-42% by 2050 to be on a 1.5°C compatible pathway. All our analysed scenarios show a rapid decline in direct emissions from this sector to 8-12 MtCO₂/yr by 2030 and 1-2 MtCO₂/yr by 2050 from 2017 level of 167 gCO₂/kWh, mostly driven by increasing energy efficiency through energy conservation activities.
Primary energy demand in industry is mostly met by fossil fuels (~79% in 2020) with oil accounting for 64% of the mix and natural gas for 12%. All scenarios show a peaking of fossil energy demand by 2025-30 and a declining trend after that to reach 45-76% share by 2050.
The share of industrial process emissions is the second highest in total emissions (excl. LULUCF), 12.2 MtCO₂e/yr in 2019 (21% of total emissions) and it is showing an increasing trend since 1990. Electronics industry accounts for the biggest share of process emissions (71%). 1.5°C pathway shows a declining trend of process emissions from 2025, reaching 0 to 3.5 MtCO₂e/yr by 2050 under different scenarios.
Energy Conservation Act of 2013 which mandates monitoring and reporting energy usage was again enhanced in 2017 and is an important policy intervention to improve energy efficiency of the industrial sector. Singapore is also considering hydrogen as a feedstock in industrial use. To further drive energy efficiency improvements, new industrial facilities and major expansion projects have to undergo design reviews to incorporate energy efficiency measures from 2018. In its biggest refinery on the Jurong island, the oil company Shell is exploring the possibility of setting up a a carbon capture and storage (CCS) hub and biofuels plant., As part of the Singapore Green Plan 2030, the government is taking various initiatives to enable sustainable production in this region. “Sustainable Jurong” outlines plans for sustainable products, energy efficient refineries, and carbon capture potential, along with research into “low carbon” hydrogen. CCS technology is marred with a history of failures and costs overrun, whereas green hydrogen has the potential to decarbonise hard to abate industry sectors.