Coal burning at Tembusu Multi-Utilities Complex on Jurong Island

Mdm Speaker, the Tembusu Multi-Utilities Complex (TMUC) employs a mix of clean coal and biomass to produce steam and electricity for chemical companies on Jurong Island. Clean coal is a significantly cheaper fuel option compared to fuel oil and natural gas, and the use of coal is expected to reduce steam prices by at least 10% for customers of TMUC.

To strike a balance with environmental concerns, only the use of low ash and low sulphur coal has been permitted, and biomass is mixed with coal to lower greenhouse gas (GHG) emissions to below that of an equivalent fuel oil plant. The co-generation process employed by TMUC is also more efficient than the separate production of steam and power through boilers and combined cycle gas turbines.

In addition, measures have been put in place by our environmental agencies to ensure that the TMUC meets environmental standards as stipulated under the Environmental Protection and Management Act and its Regulations. TMUC is held to stringent requirements for pollutants, such as particulate matter (PM) and mercury. The company is also required to transport coal via covered transportation systems to prevent fugitive dust emissions, and recycle ash as construction material.

Singapore is on track to meet its unconditional pledge of reducing greenhouse gas emissions by 7% to 11% below 2020 business-as-usual (BAU) levels. To this end, we have already implemented several energy efficiency measures to reduce the carbon footprint of our industries. These include the Grant for Energy Efficient Technologies (GREET), tax incentives via the Investment Allowance for Energy Efficiency (IA for EE), and the Design for Efficiency (DfE) scheme. This year, we are also piloting third-party financing schemes to encourage private financing of energy efficiency projects.

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Madam, I thank the Minister, for answering my question. I have two supplementary questions. First, could a committee be set up to study and authorise installation of solar panels on HDB blocks and to support the growth of alternative sources of energy? Second, why has the Energy Market Authority had to reintroduce coal, given the push for liquefied natural gas in recent years?

Madam, I thank the Member for her supplementary questions. The first, on installation of solar panels on HDB block rooftops and so on, in fact, we have a variety of schemes in place to encourage the exploration of the use of solar energy in the context of different environments, whether in terms of buildings or residential flats. HDB is experimenting with some of these, and working with the appropriate private vendors. And some of our developers are doing so. We have a range of schemes in place already, guided by a variety of Government agencies and initiatives.

The second point the Member raised is an important one. I want to emphasise to the House that, ultimately, it is important and incumbent upon us that we keep our energy options open. The fact of the matter is that whilst we are moving on liquefied natural gas as a way to diversify our energy sources, that gives us some diversification but it does not give us diversification in terms of fuel types because we are still predominantly reliant on natural gas. We should not rule out options.

Clean coal is one possibility. We have not gone about this in a large-scale way. But this is a smaller scale plant dealing with the needs in a particularly localised area. In this context, for steam. We think we should try these ideas out, subject to our environmental requirements and concerns, and making sure that our overall strategy remains one that is balanced.