Powering the Energy Transition: Singapore’s Multi-Pathway Approach
Singapore’s energy transition will not be a straightforward journey. Speaking at the Singapore Electricity Roundtable 2025, Dr Ong Lay Hwa, Head of Energy Transition at Shell, highlighted the complexity of moving towards net zero while balancing energy security, affordability, and sustainability.
Natural gas as the key bridge
Natural gas will continue to play a big role in Singapore’s energy system. Today, it supplies most of the country’s electricity. While Shell is committed to building up cleaner energy solutions, gas is essential as a reliable “bridge fuel” to support the shift towards cleaner energy.
Shell has been investing in liquefied natural gas (LNG) infrastructure, including regasification terminals, to ensure energy security. She noted that Singapore cannot simply turn off gas overnight. “We must continue to secure supply while exploring pathways to decarbonisation.”
Exploring multiple pathways
Shell is not betting on a single technology. Instead, it is working on several pathways at the same time. Among these are carbon capture and storage (CCS), renewable energy imports, hydrogen and ammonia as alternative fuels, and biomethane production.
Biomethane is especially promising. Shell acquired Nature Energy in 2023 and now operates across the full biomethane value chain, scaling production and distribution globally. Projects in Southeast Asia and Oceania are also being developed, showing the potential for this technology to be applied in the region.
Carbon capture is another pillar. Shell is involved in major CCS projects worldwide, such as Gorgon in Australia, Quest in Canada, and Northern Lights in Norway. These projects have already stored millions of tonnes of carbon dioxide.
Innovation in power generation
One example of innovation is the Net Zero Teesside Power project in the UK, the world’s first fully integrated gas-fired power plant with carbon capture. Expected to begin operations in 2028, it will capture up to two million tonnes of CO2 a year while providing 742 megawatts of abated power.
While not in Singapore, such projects demonstrate how carbon capture can keep gas in the energy mix while sharply cutting emissions. Dr Ong emphasised that lessons from these international ventures could be adapted for the region.
The role of policy and collaboration
Dr Ong underlined the importance of policy in driving change. Singapore’s carbon tax, expected to raise S$642 million in 2024, is one example of how pricing can push companies to cut emissions. “Price signals matter,” she said. “They influence investments and create incentives for businesses to act.”
But technology and policy alone will not be enough. Collaboration across sectors is vital. Dr Ong called for regulators, developers, generation companies, and utility customers to work together. “The energy transition is not something one company or country can achieve on its own,” she added.
Looking ahead
The road to net zero will involve tough choices, ongoing innovation, and close cooperation. Singapore’s decision to pursue multiple pathways shows both the difficulty of the task and the urgency to act.
As Dr Ong concluded: “Energy security, affordability, and sustainability must go hand in hand. By working together, we can build a cleaner, more resilient energy future.”
Natural gas will continue to play a big role in Singapore’s energy system. Today, it supplies most of the country’s electricity. While Shell is committed to building up cleaner energy solutions, gas is essential as a reliable “bridge fuel” to support the shift towards cleaner energy.
Shell has been investing in liquefied natural gas (LNG) infrastructure, including regasification terminals, to ensure energy security. She noted that Singapore cannot simply turn off gas overnight. “We must continue to secure supply while exploring pathways to decarbonisation.”
Exploring multiple pathways
Shell is not betting on a single technology. Instead, it is working on several pathways at the same time. Among these are carbon capture and storage (CCS), renewable energy imports, hydrogen and ammonia as alternative fuels, and biomethane production.
Biomethane is especially promising. Shell acquired Nature Energy in 2023 and now operates across the full biomethane value chain, scaling production and distribution globally. Projects in Southeast Asia and Oceania are also being developed, showing the potential for this technology to be applied in the region.
Carbon capture is another pillar. Shell is involved in major CCS projects worldwide, such as Gorgon in Australia, Quest in Canada, and Northern Lights in Norway. These projects have already stored millions of tonnes of carbon dioxide.
Innovation in power generation
One example of innovation is the Net Zero Teesside Power project in the UK, the world’s first fully integrated gas-fired power plant with carbon capture. Expected to begin operations in 2028, it will capture up to two million tonnes of CO2 a year while providing 742 megawatts of abated power.
While not in Singapore, such projects demonstrate how carbon capture can keep gas in the energy mix while sharply cutting emissions. Dr Ong emphasised that lessons from these international ventures could be adapted for the region.
The role of policy and collaboration
Dr Ong underlined the importance of policy in driving change. Singapore’s carbon tax, expected to raise S$642 million in 2024, is one example of how pricing can push companies to cut emissions. “Price signals matter,” she said. “They influence investments and create incentives for businesses to act.”
But technology and policy alone will not be enough. Collaboration across sectors is vital. Dr Ong called for regulators, developers, generation companies, and utility customers to work together. “The energy transition is not something one company or country can achieve on its own,” she added.
Looking ahead
The road to net zero will involve tough choices, ongoing innovation, and close cooperation. Singapore’s decision to pursue multiple pathways shows both the difficulty of the task and the urgency to act.
As Dr Ong concluded: “Energy security, affordability, and sustainability must go hand in hand. By working together, we can build a cleaner, more resilient energy future.”
