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SAFETY4SEA

Low-carbon fuels could be significant factor in Asia Pacific decarbonization

by The Editorial Team
October 25, 2021
in Emissions
decarbonization

Credit: Shutterstock

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The Minister for Trade and Industry Gan Kim Yong said that Singapore aims to import around 30% of its electricity from low-carbon sources by 2035.

Responding to the announcement, Wood Mackenzie senior analyst Maria Yee mentioned that:

Asia Pacific is the largest emitting region responsible for over half of the world’s carbon emissions. The region’s decarbonisation efforts will determine the pace in which the world is able to achieve the Paris Agreement goals, and Singapore can become a leader in this movement

Ms. Yee also commented that there is no ‘one size fits all’ solution, as “multiple technologies, applied in both demand and supply sectors, are required.”

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Furthermore, low-carbon fuels will be critical for decarbonising all sectors, especially in areas where electrification and renewable power are less suited.

A combination of commercial readiness, ease of adoption, lifecycle emissions savings, and availability will determine which technologies will ‘win’ in each sector. Investors will need to be able to critically discern the attractive characteristics and trade-offs for newer technologies such as hydrogen-based fuels

said Ms. Yee.

What is more, biofuels, electrification, and renewable power are the key enablers for present day decarbonisation. More specifically, biofuels are best applied in the transportation sector, with demand growth largely expected from renewable diesel and sustainable aviation fuels.

However, Woodmac notes that “tight supply of waste and other sustainable feedstock is a key limitation. Gasoline consumption in the passenger car segment is more effectively displaced by electric vehicles.”

In addition, Wood Mackenzie estimates the current low-carbon hydrogen unrisked production pipeline to be at 36 million tonnes per annum.

Despite the attractive characteristics of hydrogen-based alternative fuels, each have considerable weaknesses which we believe will be the key determinants in each fuel’s end-use suitability and overall demand

explains Ms. Yee, concluding that “as the world’s largest bunkering port, Singapore can also play a role in supporting pushing the transition towards greener marine fuels by active infrastructure investments and policy support in the marine transport space.”

Low-carbon fuels could be significant factor in Asia Pacific decarbonizationLow-carbon fuels could be significant factor in Asia Pacific decarbonization
Low-carbon fuels could be significant factor in Asia Pacific decarbonizationLow-carbon fuels could be significant factor in Asia Pacific decarbonization
Tags: decarbonizationlow carbonSingapore
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