Singapore is positioning itself at the forefront of the global energy transition by driving growth in four key areas sustainable products, biofuels, alternative maritime fuels, and carbon services.
Speaking at the APPEC 2025 event, Senior Minister of State Low Yen Ling emphasized the nation’s commitment to expanding its energy and chemicals ecosystem, leveraging its strategic advantages as the world’s largest bunkering hub and a leading trading center.
Building a Sustainable and Multi-Fuel Future
Singapore is scaling up sustainable product production on Jurong Island to meet rising regional demand. A key milestone is Arkema’s new facility, the world’s largest integrated plant for advanced bio-circular materials, slated to begin operations in early 2026. On the fuel side, the country hosts Neste’s facility, the world’s largest producer of sustainable aviation fuel.
Minister Low highlighted that Asia is set to surpass Europe in biofuel production capacity, underscoring Singapore’s strategic role as a biofuel hub. Its extensive network of agri-commodity trading companies, including Wilmar and Olam, further strengthens feedstock supply for biofuel manufacturing.
Looking ahead, Singapore is preparing for a multi-fuel maritime future. LNG, methanol, and biofuels will dominate in the near term, while ammonia is projected to gain a significant share of the global bunker mix by 2050.
The world’s first ammonia-powered ship, Fortescue Green Pioneer, successfully operated in Singapore in 2024, supported by the Maritime and Port Authority and other partners. Efforts are also underway to establish national standards for ammonia bunkering.
Strengthening Carbon Services and Trading
Alongside fuel innovations, Singapore is becoming a hub for carbon services. The city-state is now home to over 150 firms in the carbon value chain, doubling its presence in just four years. This growing ecosystem supports global energy players and trading firms in setting up carbon credit trading functions.
Singapore’s robust carbon tax policy and its Digital MRV (monitoring, reporting, verification) framework reflect a forward-looking approach, integrating technology to enhance transparency and efficiency.
According to a UN Global Compact Network Singapore report, nearly three-quarters of companies in the national emissions tracking program have already reduced their carbon output, either in absolute terms or intensity.
Singapore’s dual focus on alternative maritime fuels and carbon services underscores its ambition to remain a global leader in the energy transition. By fostering innovation in biofuels, advancing ammonia as a marine fuel, and expanding carbon trading capabilities, Singapore is setting a blueprint for sustainable growth that balances economic opportunity with environmental responsibility.
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Source: S&P GLOBAL
