The city-state announced on Friday that it will set aside S$143 million for research and development of low-carbon technologies aimed at heavy-industry applications.
Funding plan targets low-carbon technologies
The programme concentrates on three primary streams: carbon capture, carbon utilisation, and emerging solutions such as electrified industrial heating. Carbon capture efforts will explore ways to trap emissions directly from factories, while utilisation research seeks to turn captured carbon into useful products. Electrified heating aims to replace fossil-fuel-based processes with electricity sourced from renewable generation, thereby cutting emissions at the point of use.
Within the overall budget, S$100 million will support a co-funding scheme that pairs private companies with public research institutes to tackle emission-reduction challenges. This collaborative model is designed to blend commercial expertise with academic rigor, encouraging joint development of technologies that can be scaled up quickly.
The remaining S$43 million is earmarked for research institutes to pursue the same objectives independently. These institutions will receive direct grants to advance fundamental science, prototype testing, and pilot-scale demonstrations that complement the industry-led projects.
Co-funding scheme supports company-led projects
Eligible projects can receive up to 75% of their costs from the government, lowering financial barriers for industry participants. By covering a large share of expenses, the scheme reduces the risk that firms face when investing in unproven low-carbon solutions.
Prioritising industry-driven initiatives, the scheme aims to raise the likelihood that solutions move from the lab to commercial deployment.
Deputy Prime Minister Gan Kim Yong said the transition of manufacturing and energy-intensive sectors is essential for the nation’s climate goals. He emphasized that a coordinated effort between the public and private sectors will be required to achieve the emissions cuts needed for long-term sustainability.
He noted that around 65% of national emissions stem from industry, including electricity use, and that cutting these emissions is critical to achieving net-zero by 2050.
Officials added that Singapore’s limited land and resource base restricts large-scale deployment of some options, making targeted research necessary. Because space is at a premium, the government prefers to fund solutions that can be integrated into existing facilities rather than requiring expansive new infrastructure.
Testbed facility and partner projects move forward
The initiative sits within a broader S$800 million research and innovation programme under the RIE 2030 strategy, which guides science and technology investment through 2030. This larger framework provides a stable financing environment for multiple climate-focused projects across the country.
It builds on earlier Low-Carbon Energy Research schemes that also supported collaborative projects between firms and academia. Those predecessor programmes helped establish a network of partners and laid the groundwork for the current, larger-scale effort.
A new physical testbed on Jurong Island, costing S$62.5 million, will help companies test and scale emerging low-carbon technologies for industrial use.
Amogy, IHI and Metha8 were the first firms selected to use the facility, pursuing hydrogen production, catalyst development and methanol-reforming processes.
The Advanced Energy and Decarbonisation Office has already granted S$65 million to five projects that demonstrated promise under the previous scheme. Those awards covered a range of technologies, including metal-organic frameworks for carbon capture, methane pyrolysis for hydrogen, membrane-based capture, and sorbent development from incineration ash.
The Economic Development Board and the Advanced Energy and Decarbonisation Office, the decarbonisation arm of A*Star, will jointly manage the programme.
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