Speech by Min(TR) Grace Fu at the Evonik Singapore Smart (Sodium Methylate Advanced Recompression Technology) Grand Opening Ceremony

Her Excellency Dr Bettina Fanghänel, Ambassador of the Federal Republic of Germany to Singapore,

Ms Lauren Kjeldsen, Member of the Executive Board of Evonik Industries AG and Chief Operating Officer Custom Solutions,

Distinguished guests, ladies and gentlemen,

Introduction

1.    Good afternoon.

2.    I was here just a year ago for the opening of Evonik Singapore’s Methionine Expansion project, which was then, and still is, the largest methionine facility in the world.

3.    Today, I’m happy to be back for the opening of Evonik Singapore’s Sodium Methylate Advanced Recompression Technology, or SMART plant for short.

a.    This is a major milestone in Evonik’s 56 year journey in Singapore, which began in 1969 when the first sales office was set up.

b.    Evonik first broke the ground in 2023 and in less than three years, has taken this state-of-the-art alkoxides plant to completion - on schedule and on budget.

c.     The SMART plant will also aim to operate with net-zero Scope 1 and Scope 2 carbon emissions and produce up to 100 kilotonnes per annum of sodium methylate, a catalyst for biodiesel production. This will contribute to Singapore’s net-zero ambition and Sustainable Jurong Island vision.

Sustainable Jurong Island

4.    In 2021, the Government released the Sustainable Jurong Island report which detailed our plans to transform Jurong Island into a Sustainable Energy and Chemicals Park. In particular, Singapore aims to:

a.    Increase sustainable product output by 1.5 times from 2019 levels;

b.    Unlock at least 2 million tonnes of carbon capture potential.

5.    We are making good progress on two fronts.

a.    On sustainable product output, we have a strong pipeline of specialty chemical investments, with recent investments from Kuraray, Arkema and now, Evonik. These investments will position Singapore to capture rising global demand for specialty chemicals, and is possible only because of the long-term collaboration with trusted partners who share our vision for sustainable growth.

b.    On carbon capture and storage, or CCS, MTI announced the appointment of S Hub last year as the lead developer to study the viability of developing a cross-border CCS project from Singapore. We have made good progress in our discussions with both commercial and Government stakeholders and aim to commence the CCS project by 2030. 

6.    The Government is also ramping up our support for research & development and test-bedding of low-carbon solutions.

a.    The Low-Carbon Energy Research Programme, with almost $190 million in funding to support early-stage research into low-carbon technologies such as carbon capture, utilisation and storage and hydrogen; and

b.    The Low-Carbon Technology Translational Testbed, or LCT³, which will allow companies to use its modular plug and play system to translate and scale-up emerging low-carbon technologies.

Specialty Chemicals will underpin Singapore’s E&C sector growth

7.    The Energy & Chemicals sector is our 2^nd largest manufacturing sector, and it has been a cornerstone of Singapore’s economy. In its next phase of growth, Singapore will focus on higher value specialty chemicals, which has shown robust global growth over the last few years. In fact, specialty chemicals like alkoxides now account for around one-fifth of Singapore’s E&C sector, with value-added doubling to S$5 billion over the last decade.

8.    We have identified four key specialty chemicals segments that capture important growth trends: nutrition and agriculture; hygiene and health; smart materials and mobility; and sustainability.

9.    Singapore is well positioned to be a production base for these chemicals – combining our robust, world-class IP protection regime, leading physical goods connectivity, and an extensive network of 28 free trade agreements covering over 85% of global GDP.

10. We are thus glad that we have partners like Evonik have given us your vote of confidence by investing in Jurong Island to scale production of specialty chemicals that will serve growing regional and global demand.

11. I’m thus particularly excited about this SMART plant, which is Evonik’s first world-scale alkoxides production facility in Southeast Asia that will produce up to 100 kilo tonnes of alkoxides each year. These catalysts are in turn used in the production of biodiesel as well as the chemical recycling of plastics. They are also used in the production of pharmaceuticals and Omega-3 supplements.

12. These catalysts might be used in small quantities, but they will deliver an outsized impact in greening our planet through cleaner transport fuels and enabling circular economy solutions for plastics, while improving human health.

13. Beyond the green catalysts manufactured here, Evonik has invested in sustainable production. I understand that Evonik is aiming for net-zero Scope 1 and 2 emissions from this facility – made possible by its highly energy efficient vapour recompression technology, and investment in renewable energy. This project, supported by EDB, encourages efforts to strengthen plant resilience. This is definitely an exciting development for the Energy & Chemicals industry, and we look forward to the continued transformation of Jurong Island as companies like Evonik produce sustainable products sustainably.

Transforming for the Future with Partners from the Past

14. Even as we transform Jurong Island towards a more sustainable future anchored by growth in specialty chemicals, we are glad that we can do so with close, like-minded partners who have stayed the course.

15. Over the past 56 years, Evonik has significantly grown your presence in Singapore, and now employs more than 730 people across Evonik’s Asia-Pacific Regional Headquarters, Asia Research Hub, and five manufacturing facilities, including this latest alkoxides plant.

16. Evonik has also invested in developing our local talent and made significant contributions to our local innovation ecosystem.

a.    Through Evonik Venture Capital, Evonik is backing early-stage, promising local startups like Revivo Biosystems and Allay Therapeutics, which helps to scale technology and bolsters local deep-tech innovation.

b.    Over the years, Evonik has had multiple ongoing research and internship partnerships with our Institutes of Higher Learning, and frequently hosts outreach events such as guest lectures at our universities to profile the specialty chemicals industry.

17. These efforts exemplify the kind of deep-rooted, mutually enriching partnership we value and encourage.

Conclusion

18. Let me thank Evonik for inviting me back again. I’m honoured to have witnessed Evonik’s growth over two consecutive years, and I look forward to more breakthroughs by Evonik in your commitment to achieving both excellence and sustainability.