Singapore to use biomethane instead of fossil gas

October 23, 2026

Singapore is preparing to introduce biomethane as a lower-carbon energy source by 2028, marking another step toward reducing its dependence on fossil fuels and achieving net-zero emissions by 2050.

On October 23, Deputy Prime Minister Gan Kim Yong announced that three major electricity producers — Keppel Energy, Sembcorp Utilities and Tuas Power Generation — had been selected to import and distribute biomethane through a new pilot programme.

The initiative is part of Singapore's broader strategy to decarbonise electricity generation and industrial operations while maintaining energy security and economic competitiveness.

Currently, approximately 95% of Singapore's electricity is generated using natural gas, making the power sector heavily dependent on fossil fuels.

Biomethane offers a potential alternative because it can be produced from organic waste and used in existing natural gas infrastructure with minimal modifications.

What is biomethane and why does Singapore need it?

Biomethane is a renewable gas produced by processing organic materials, including food waste, agricultural residues, livestock manure and sewage sludge.

Unlike conventional natural gas, which originates from underground fossil fuel deposits, biomethane is derived from biological sources.

Its chemical composition is similar to that of natural gas, allowing it to be transported, stored and consumed using much of the country's existing gas infrastructure.

This compatibility makes biomethane particularly attractive for countries seeking to reduce greenhouse gas emissions without completely replacing their energy systems.

However, its actual climate benefits depend on factors such as production methods, methane leakage, feedstock sourcing and transportation emissions.

For Singapore, biomethane could help diversify energy supplies while supporting the transition toward cleaner electricity and industrial production.

Singapore launches 300 MW biomethane import pilot

Under the new programme, the three appointed energy companies will import biomethane from regional and international suppliers to support up to 300 megawatts (MW) of electricity generation capacity.

According to government estimates, this capacity is comparable to the electricity requirements of approximately 600,000 Housing and Development Board households.

The imported biomethane, or electricity generated from it, will primarily serve energy-intensive businesses, including data centres and industrial manufacturers.

These sectors require substantial and reliable electricity supplies, making them important participants in Singapore's energy transition.

The Economic Development Board (EDB) described the initiative as South-east Asia's first biomethane import pilot of its kind.

The programme is expected to operate for 15 years, providing an opportunity to evaluate the commercial and environmental feasibility of using imported renewable gas at scale.

It builds on a regulatory sandbox introduced in October 2025, which allows participating companies to test new business models and operational arrangements under regulatory supervision.

The pilot will examine several important issues, including biomethane procurement, international supply chains, regulatory requirements and integration with existing energy infrastructure.

Results from the programme could inform future regulations and support broader biomethane adoption in Singapore.

Singapore commits $143 million to industrial decarbonisation

Alongside the biomethane announcement, Singapore unveiled a $143 million Industry Decarbonisation Funding Initiative to accelerate the development and commercialisation of technologies that reduce industrial greenhouse gas emissions.

The funding was announced during the inaugural Singapore Industry Decarbonisation Forum, organised by EDB in collaboration with A\*STAR and the Advanced Energy and Decarbonisation Office.

Industrial activities, including petrochemical manufacturing, oil refining and fuel combustion, remain among the country's most challenging sources of emissions.

According to Gan, industries account for approximately 65% of Singapore's greenhouse gas emissions, including emissions associated with their electricity consumption.

Reducing these emissions will therefore be essential for achieving the country's 2050 net-zero target.

The government intends to support technologies that can deliver measurable environmental improvements while helping Singapore's industrial sector remain internationally competitive.

Three priority areas for low-carbon innovation

The new funding programme will concentrate on three technological areas that could significantly reduce emissions from industrial processes.

Carbon capture technologies will focus on preventing carbon dioxide generated by industrial facilities from entering the atmosphere. Captured CO₂ may then be transported for permanent storage or other applications.

Carbon utilisation solutions will explore ways to transform captured carbon dioxide into commercially useful materials and products, including construction materials, chemicals and alternative fuels.

Emerging decarbonisation technologies will cover additional innovations, including carbon storage systems and methods for reducing greenhouse gases other than carbon dioxide.

These technologies could provide new pathways for industries where electrification and conventional renewable energy solutions are difficult to implement.

Up to $100 million allocated for industry-led research

Of the total $143 million funding package, up to $100 million will support research and development projects initiated by businesses, including start-ups and technology providers.

The programme, known as Decarbonisation Research for Industry, Ventures and Enterprise, aims to strengthen collaboration between private companies and research institutions.

Its primary objective is to move promising scientific discoveries beyond laboratory testing and develop solutions suitable for commercial industrial applications.

The Singapore government will provide co-funding of up to 75% of eligible project expenses.

Applications opened on October 23.

By sharing development costs with participating businesses, the initiative seeks to reduce financial barriers to innovation and encourage investment in technologies that may otherwise be considered too expensive or technically uncertain.

Singapore begins construction of $62 million low-carbon technology testbed

Another major development announced at the forum was the groundbreaking of the $62 million Low-Carbon Technology Translational Testbed (LCT3) on Jurong Island.

The facility will provide a dedicated environment where companies and researchers can test, improve and scale emerging low-carbon technologies under realistic industrial conditions.

Hosted by the A\*STAR Institute of Sustainability for Chemicals, Energy and Environment, LCT3 will offer modular infrastructure that can be adapted to different research and demonstration projects.

Participating companies will gain access to shared utilities, testing facilities and relevant operational permits and licences.

This arrangement is intended to reduce the time and cost required to establish individual pilot facilities.

The testbed will initially concentrate on carbon utilisation and low-carbon hydrogen technologies, two areas considered important for reducing emissions from industrial operations.

Three companies selected for initial hydrogen and carbon projects

The first organisations expected to use the LCT3 facility are Amogy, IHI Corporation and Metha8.

Each company will collaborate with A\*STAR on a different low-carbon technology.

• Amogy will develop technology for producing hydrogen from ammonia, exploring its potential as an alternative energy carrier.

• IHI Corporation will investigate methods for converting captured carbon dioxide into sustainable aviation fuel.

• Metha8 will work on an integrated system that converts methanol into electricity.

These projects are designed to demonstrate how emerging technologies can operate beyond controlled laboratory environments.

Industrial facilities often require technologies to function continuously under demanding conditions, making large-scale testing essential before commercial deployment.

The LCT3 platform will allow developers to assess performance, reliability and operational requirements without having to construct dedicated demonstration infrastructure from the beginning.

 Why industrial innovation is essential for Singapore's net-zero target

Singapore has committed to achieving net-zero greenhouse gas emissions by 2050, but meeting this objective requires significant changes across its energy and industrial sectors.

The country's limited land availability, substantial industrial activity and dependence on imported energy create challenges for large-scale decarbonisation.

Although renewable electricity imports and other clean energy technologies are expected to contribute to the transition, additional solutions will be necessary for sectors that cannot easily eliminate fossil fuel consumption.

Biomethane could provide a lower-carbon option for compatible gas infrastructure, while carbon capture, hydrogen technologies and industrial research programmes could help address emissions from manufacturing processes.

At the same time, Singapore is seeking to strengthen its position as a regional centre for clean energy innovation and advanced industrial technologies.

By supporting partnerships between researchers, technology developers and established companies, the government aims to accelerate the commercial deployment of practical decarbonisation solutions.

A new phase in Singapore's clean energy transition

Singapore's latest initiatives demonstrate an increasingly diversified approach to reducing greenhouse gas emissions.

The planned 300 MW biomethane import programme, the $143 million industrial decarbonisation funding initiative and the $62 million LCT3 research facility represent complementary efforts to transform the country's energy and manufacturing systems.

Together, these programmes could help businesses adopt lower-carbon fuels, develop commercially viable technologies and reduce emissions from difficult-to-decarbonise industrial activities.

Their long-term impact will depend on successful implementation, technology performance, commercial viability and verified emissions reductions.

As Singapore works toward its 2050 climate commitments, investments in renewable gases, industrial innovation and low-carbon infrastructure are expected to play an important role in shaping its future energy system.