SINGAPORE: Singapore has unveiled a S$143 million Decarbonisation Funding Initiative (FI) to accelerate the development and commercialisation of low-carbon technologies for industries.
The funding initiative will be led by the Singapore Economic Development Board (EDB) and the Advanced Energy and Decarbonisation Office (AEDO).
Deputy prime minister and energy, trade and industry (trade) minister, Gan Kim Yong said the initiative will support the development of technologies to address industries’ key decarbonisation challenges.
These include capturing carbon more efficiently from industrial flue gas or converting captured carbon into useful products such as chemicals.
“To give companies a direct role in shaping this research, we will set aside up to S$100 million within this initiative for a new programme called Decarbonisation Research for Industry, Ventures, and Enterprise (DRIVE)," he said during Singapore Industry Decarbonisation Forum 2026 on Friday.
Meanwhile, EDB has appointed Keppel Energy, Sembcorp Utilities and Tuas Power Generation as biomethane aggregators to import and supply biomethane, a renewable alternative to natural gas.
"The sandbox will help pave the way for wider biomethane adoption, supporting up to 300 megawatts (MW) of capacity from 2028," Gan added.
According to a statement by EDB, the sandbox will test the commercial, regulatory and operational arrangements needed for biomethane imports, helping to shape the frameworks for wider adoption.
The sandbox will run for 15 years, with the appointed aggregators expected to bring in their first biomethane supplies by the end of 2028.
Under the initiative, the generation companies will import up to 300 MW of biomethane from regional and international sources and supply it to data centres and industrial manufacturers in Singapore, the statement said.