SunGreenH2, the native startup behind the two-kilowatt system, says its design omits costly metals akin to platinum, titanium and iridium, whereas being equally sturdy and 20 per cent extra vitality environment friendly than present setups. It’s trying to quickly show a bigger 20kW unit.
Few in Singapore would have laid eyes on the system – partly due to the various safety hoops one should leap via to get on to Jurong Island. SunGreenH2, for its half, envisions its use primarily abroad. An identical system is already being trialled on a microgrid in Spain.
Singapore has lately signalled an curiosity in adopting low-emissions hydrogen to decarbonise its economic system, at present 95 per cent powered by pure gasoline. New gasoline vegetation within the city-state now should be capable of deal with at the very least 30 per cent hydrogen, whereas a bunkering and electrical energy era trial for spinoff gas ammonia is being studied by two massive industrial consortia.
Within the wake of coverage manoeuvres, a brand new crop of startups has emerged, supported by multi-million greenback analysis grants the nation has been offering since 2021. These ventures create smaller waves domestically not simply as a result of their nascency, but additionally as a result of they typically offshore early to hunt progress alternatives that Singapore at present can not present.
Abroad growth comes with the blessing of the Singapore authorities, which is keen to see homegrown manufacturers succeed and supplies help in discovering overseas enterprise companions. However with world competitors heating up, there are additionally rising requires regulators to broaden native testbedding alternatives – if to not develop a house market, then at the very least a nursery for entrants to construct expertise earlier than competing overseas.
Greener pastures
SunGreenH2’s electrolyser, which splits water into two gases, oxygen and hydrogen. When plugged into renewable energy, this course of represents the cleanest approach to produce hydrogen gas. Picture: SunGreenH2.
Tim Rockell, SunGreenH2’s senior vice chairman of enterprise growth, sees progress alternatives in each path from Singapore. The agency, which was based in 2020 and opened an Australian department final yr, is concentrating on a US$15-20 million funding spherical this yr to broaden additional – probably to India, Malaysia, Europe, United Kingdom and North America, Rockell mentioned.
The goal is for SunGreenH2 to leverage rising world demand for “inexperienced” hydrogen, made in electrolysers powered by renewable vitality, typically the cleanest however costliest approach to produce the gas. Inexperienced hydrogen at present prices between US$4-12 per kilogramme to supply, versus underneath US$2 for the extra conventional, carbon-intensive methodology utilizing methane, in keeping with analyst BloombergNEF. SunGreenH2 is aiming to get inexperienced hydrogen manufacturing right down to US$3/kg by 2025, and underneath US$2 by 2027.
Extra Singapore firms in downstream functions are additionally making early abroad forays. Sydrogen, a 2021 outfit, introduced a cope with China’s Shanghai Hydrogen Propulsion Expertise this month to develop a ship-borne 250kW hydrogen gas cell, which is anticipated to be prepared by 2025. The agency, arrange by precision engineering agency Nanofilm Applied sciences and Singapore state investor Temasek, already has an workplace and manufacturing line in China for bipolar plates, a element within the gas cells.
“Again in 2021, we noticed good indicators that the market is already beginning to consider hydrogen, particularly in China,” mentioned Sydrogen chief government Gian Yi-Hsen. Continued momentum within the sector in 2022 at the same time as Russia’s invasion of Ukraine rattled markets indicated resilience, whereas falling renewable electrical energy costs signalled better availability of fresh hydrogen gas for end-users, added Gian, who can be eyeing alternatives in Europe, Japan and Southeast Asia.
Some are pivoting into the business following shifting buyer demand. Lee Swee Ser, a 30-year veteran within the diesel mills enterprise, arrange Powerzone H2 in 2021 to make catalyst-coated membranes, one other key a part of hydrogen gas cells, after purchasers more and more requested him for clear vitality choices. Lee sees Japan as essentially the most promising marketplace for membranes, and Indonesia for full gas cell units. The agency can be exploring alternatives in Germany, Lee informed Eco-Enterprise.
Lee Swee Ser is the managing director of Singapore hydrogen gas cell startup Powerzone H2. Picture: Liang Lei/ Eco-Enterprise.
There are actually over 40 firms underneath the Hydrogen and Gas Cell Affiliation of Singapore (HFCAS), president Noel Chin informed Eco-Enterprise, with most being small and medium enterprises. The determine is 50 per cent larger than 5 years in the past, although progress is attributed to each new entrants and present companies searching for membership.
Globally, the low-carbon hydrogen market is anticipated to rise nearly 10-fold to US$12 billion by 2030, in keeping with the Worldwide Vitality Company. If the entire world shifts to a net-zero emissions pathway, the pie will increase to US$112 billion.
The possibilities of a giant break within the hydrogen house are a lot larger exterior Singapore. International locations akin to Australia have extra land and beneficial climate for big photo voltaic panel installations to energy hydrogen manufacturing. China, Japan and South Korea have massive industrial sectors hungry for the clear gas. A number of regional international locations additionally provide cheaper manufacturing.
“In China, an illustration venture is 500 or 1,000 automobiles. In Singapore, two automobiles would in all probability rely as a very good demonstration venture,” mentioned Gian, pointing to hydrogen car trials.
Restricted testing grounds
To entrepreneurs, Singapore has obtained many priorities proper in supporting hydrogen sector growth. Up to now 4 years, a number of million {dollars} have been poured into analysis and growth, the newest tranche unveiled simply final week as a part of a S$90 million (US$67.2 million) package deal for sustainable fuels. That very same week, a brand new laboratory within the Nationwide College of Singapore was opened to assist small companies prototype hydrogen options.
The federal government can be eager to assist its hydrogen startups transfer abroad, with enterprise growth company Enterprise Singapore serving to with overseas matchmaking. Each SunGreenH2 and Sydrogen have been beneficiaries of the company’s programmes.
Whereas Singapore’s model picture and technological prowess assist firms get a foot within the door abroad, business insiders are additionally realising that have counts.
“For a Singapore firm going abroad in any sector, you actually need some residence credentials,” mentioned Rockell, including that SunGreenH2 advantages from having the ability to exhibit its electrolyser in analysis company A*Star’s laboratory.
HFCAS’s Chin agrees that startups have to first show that their know-how is possible and financially viable earlier than bringing their enterprise circumstances abroad.
However that is typically an space the place startups battle in. The difficulty isn’t just Singapore’s small market dimension; many ventures additionally bemoan tight laws that additional restrict the probabilities for pilots.
“One of many challenges as we speak is that the usual company response is – go do a danger evaluation – after which we have to spend three to six months, tons of of 1000’s of {dollars} on it,” mentioned Gian of getting regulatory approval for hydrogen trials in Singapore.
The cautious method to hydrogen makes security sense, in a densely populated metropolis. Hydrogen is an simply ignitable gas and infrequently must be compressed for transport. The lightest molecule on Earth can be identified to leak simply, and typically could cause metals to turn into brittle.
Security issues have plagued makes an attempt at trials, together with what may have been Singapore’s first multi-fuel car station to produce hydrogen, proposed in 2021. Eco-Enterprise understands regulatory roadblocks had stood in the way in which, and as of this yr, the plan had switched to solely putting in electrical chargers on high of the present diesel and compressed pure gasoline choices.
This setback comes as Singapore’s neighbour Malaysia is making massive plans on hydrogen gas stations in its Sarawak state, which has focused 100 such amenities in 2030. HFCAS has led commerce missions there to discover alternatives, together with a delegation of over 20 companies to attend a hydrogen convention in June. The concern is that Sarawak’s alternatives shall be snapped up by rivals quick if Singaporean firms are usually not quick sufficient.
In parallel, the affiliation is attempting to guarantee that the following try at a Singapore multi-fuel station succeeds, by contributing to a technical reference that spells out the designs and safeguards wanted to run such an institution. It hopes to have the doc prepared within the coming weeks, Chin informed Eco-Enterprise.
What’s in it for Singapore?
Singapore’s hydrogen businessfolk say they’re joyful to be carrying the nationwide model abroad of their growth plans. “Intel chips are made the world over. However it’s nonetheless a US product,” mentioned Powerzone H2’s Lee, as he mentioned plans to offshore manufacturing of gas cell membranes to probably China, Thailand or Vietnam.
Sydrogen had signed an MOU for shipborne hydrogen gas cell growth with Shanghai Hydrogen Propulsion Expertise at a government-led commerce assembly in Shanghai, China, in July. Picture: Sydrogen.
A lot of them are additionally eager to maintain administration and analysis headquarters within the metropolis state, which might assist develop the capabilities and workforce wanted for any future nationwide scaleup plans.
Some startups’ abroad partnerships may additionally deliver enterprise again to Singapore. Sydrogen’s China accomplice, Shanghai Hydrogen Propulsion Expertise, is eager on getting into the city-state’s bustling maritime sector the place hydrogen or its spinoff fuels may at some point be used, Gian mentioned.
It stays to be seen how deep Singapore intends to dive into the hydrogen recreation. Its nationwide hydrogen technique, printed end-2022, outlines the various analysis, planning and diplomacy steps the nation has began to take, but additionally states that the tempo of hydrogen deployment and infrastructure growth shall be consistent with technological and world progress, given the uncertainties across the nascent sector.
Singapore as a big hydrogen hub seems unlikely to Gian, however he sees the city-state turning into a “area of interest market”, pointing to how some coast guard cameras have already got gas cell backup – although this enterprise was snagged by SFC Vitality, a German agency.
Different entrepreneurs additionally level to fuelling backup energy and drones as doable native enterprise sectors. The market would broaden significantly if Singapore’s public housing blocks all switched from diesel to hydrogen-based standby mills, Lee mentioned.
To make Singapore’s market alternatives clearer, Chin mentioned HFCAS will quickly begin on creating an business implementation roadmap that may spotlight the place hydrogen gas can finest be utilized in Singapore, together with the capabilities and insurance policies wanted to allow these functions. The affiliation goals to have the plan prepared by mid next-year.
It may go a way in addressing market dangers for Singapore’s hydrogen startups, however they’re nonetheless confronted with many teething points within the nascent sector. Value stays a giant concern – hydrogen energy era as we speak stays some 20 occasions dearer than utilizing diesel, Lee estimates, including that the funding panorama can be getting more difficult with a sluggish world economic system hovering simply above recession ranges.
“Many buyers are serious about hydrogen gas cell applied sciences. However in addition they include many questions,” Lee mentioned. Nonetheless, he’s holding out hope of an eventual hydrogen gas renaissance, given the decarbonisation pressures companies and buyers are dealing with.
“If we do set up ourselves, attain the market and get prospects’ demand, I feel it isn’t that we’d like them; they’ll want us,” he mentioned.
