Mr Lee Yi Shyan at the UK – Singapore Workshop on Energy Technology

Speech by Mr Lee Yi Shyan Minister of State for Trade and Industry at the UK-Singapore workshop on Energy Technology on Monday, 26 November, 10.45am at Breakthrough Theatrette, Level 4, Matrix@Biopolis

HE Paul Madden, British High Commissioner to Singapore

Prof. Chong Tow Chong, Executive Director, A*STAR Science and Engineering Council

Distinguished guests

I am happy to be here this morning at the UK – Singapore Workshop on Energy Technology.Since its launch in 2004 under the UK – Singapore Partners in Science Programme, this workshop has grown to become a key platform linking our scientific communities together. To our overseas guests, a warm welcome to Singapore.

Energy – Challenges and Opportunities

I am pleased that both countries have chosen to discuss energy at today’s session. Two weeks ago, Singapore unveiled our National Energy Policy Report that outlines a holistic national energy policy framework to support our continued economic growth. The changing global energy landscape presents both challenges and opportunities. One key challenge is the need to secure reliable, affordable energy sources to support economic growth against the backdrop of high energy prices and growing supply risks. Another important issue is the impact of the use of energy on climate change. The global community needs to step up efforts to mitigate the adverse impact of climate change. Here in Singapore, we are addressing these challenges through proactive strategies such as promoting competitive markets, diversifying energy supplies and improving energy efficiency to ensure that our economy will grow in an environmentally sustainable manner.

There are also tremendous economic opportunities in the energy sector. In 2006, the overall venture and private equity investment flowing into the global clean energy sector increased by 67 per cent to US$18.1 billion from US$10.8 billion in 2005

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. We will leverage on Singapore’s position as a key energy hub to further expand in the traditional oil and gas sectors and tap into opportunities in emerging sectors such as clean energy. Our target is to increase the value-added of the energy industry from S$20 billion currently to S$34 billion by 2015, and to triple the employment in the industry from 5,700 to 15,300.

Singapore’s potential in energy R&D

Research & Development (R&D) is the bedrock of any sustainable energy industry. We have already made some headway in this, and A*STAR will continue to lead the overall R&D efforts.

First, the energy industry complements Singapore’s existing cluster strengths in electronics, chemicals and process engineering. Energy R&D encompasses multi-disciplines across the different sciences and engineering fields. In the last 10-15 years, A*STAR research institutes have developed strong capabilities in key areas such as computational, engineering, chemical and biological sciences. It is thus in a unique position to capitalise on the integration and interfacing of these domains to research and develop new and improved energy technologies. A*STAR launched its Energy Technology R&D Programme in May 2007, embarking on cutting edge R&D activities in diverse areas such as fuel cells, bio-energy, next- generation solar photovoltaics, and cleaner conventional fuels. For instance, ICES, the Institute of Materials Research and Engineering (IMRE), the Singapore Institute of Manufacturing Technology (SIMTech) and the Institute of High Performance Computing (IHPC) are combining their capabilities to work on fuel cell technology. Therefore, Fusionolis, Singapore’s integrated R&D powerhouse for next-generation technologies, will give us a further boost when it is developed over the next few years.

Second, Singapore will build on our track record of successful partnerships with the industries. We are attracting corporate energy R&D groups and laboratories to partner our research organisations to take results from “lab to life”. Fusionopolis will enhance our value propositions, through the co-location of public and private sector research laboratories. For instance, Vestas is establishing a world-scale wind energy R&D centre with a team of 150 engineers at Fusionopolis. We are also facilitating the setting up of energy-related manufacturing plants in Singapore that value access to technology centres and research programmes. Norway’s Renewable Energy Corporation announced recently that they will build a $6.3 billion in Singapore to build the world’s largest solar manufacturing complex, with provision for future R&D activities.

The third reason is that Singapore has always recognized the value of taking a whole-of-Singapore approach to energy R&D. A*STAR will coordinate energy R&D efforts with other agencies such as the Economic Development Board, the National Environment Agency and the Energy Market Authority; together with the institutions of higher learning (IHLs) and industry, ensuring that our efforts are concerted and complementary for maximum impact.

New Developments in Energy R&D

Today, I am pleased to announce two new developments that will strengthen Singapore’s energy R&D efforts. First, A*STAR will establish a new centre for energy technologies called SINERGY (Singapore Initiative in New Energy Technologies) Centre.SINERGY Centre will be a national test-bedding and R&D infrastructure for sustainable energy solutions. The government has provided an initial sum of S$38.5 million to establish this centre. This is a critical investment in our overall energy R&D efforts. SINERGY Centre’s initial focus will be on distributed energy and microgrid systems and technologies, an area of great interest to the energy and power industry. It will transform the way we interact with energy through the application of info-comm technologies to energy and power systems.

SINERGY Centre will be located at the Fusionopolis and the JurongIsland, where it will be co-located with the Institute of Chemical & Engineering Sciences (ICES). At the Centre, researchers will study how alternative energy technologies such as solar, biomass, wind and fuel cells can be collectively harnessed. Real-time information will give researchers an understanding of the performance of each energy resource and how they can be managed to maximise efficiency, quality and reliability. SINERGY Centre will also be a demonstration of near-market energy technologies to accelerate their commercialisation. Through its activities, SINERGY Centre will contribute to the formulation and reform of policies and regulations in the energy and power sectors, and strengthen Singapore’s standing and value as a hub for sustainable energy technologies.

The second development is the call for research proposals on the theme “Intelligent Energy Distributed Systems” (IEDS) launched recently. I am pleased to announce that 10 projects have been selected, based on their scientific and technical merits, and the potential for the technologies developed to provide cost-competitive and effective solutions to the energy and power sectors. Several of the projects have already included active industry participation and collaboration in their proposals.As the theme of this research program is closely aligned with the developments of SINERGY Centre, some of the research will be carried out at the Centre, and a substantial portion of the research output will be testbedded and showcased at SINERGY Centre. The total amount for funding for these 10 projects is S$8 million. This amount will be disbursed to the projects over a period of 3 years.

Building Global Linkages

Set against this backdrop, this UK-Singapore Energy Workshop is timely. It is important that Singapore is plugged into the global scientific landscape in energy R&D to build its capabilities. The UK is a global leader in energy R&D, and is actively pursuing research in areas such as wind, solar, marine, biomass, fuel cells and green buildings. I understand that we also have participants from our ASEAN countries namely Indonesia, Malaysia, Thailand and Vietnam. Asia is fast-growing and huge market for energy products. Given Asia’s unique needs and tropical climate, collaborations with Asia will offer new perspectives and provide an inroad for UK to enter the market. May these collaborations bring us a step closer to finding novel and innovative ways to sustain our global energy needs.

Finally, let me take this opportunity to thank all our speakers, and wish all of you a fruitful workshop. Thank you. 

[1] Source: New Energy Finance, Cleaning up 2007, Aug 2007.