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DIRECTORY OF SINGAPORE PROCESS & CHEMICALS INDUSTRIES 2021/2022
improved maintenance. Many businesses would have locked in their costs for projects contracted earlier and, going forward, would need time to adjust to higher housing costs for their workers.
Opportunities for PCM firms to target low carbon sustainability projects
To sustain its migrant workforce, which has become increasingly costly and more difficult to recruit, PCM will come under increasing pressure to find new revenue streams. While there will still be new petrochemical and pharmaceutical projects, they could consider other energy- related areas including renewables such as solar energy or carbon capture and storage (CCS).
In support of the Paris Agreement, Singapore has a Long-term Low Emissions Development Strategy (LEDS) to reduce its emissions intensity by 36% by 2030 from the 2005 level. On 1 January 2019, the country implemented a carbon tax in industries, the first carbon pricing scheme in Southeast Asia.
Singapore’s National Climate Change Secretariat (NCCS) and the Economic Development Board (EDB) had commissioned a study to identify the potential for Carbon Capture, Storage and Utilization (CCUS) for Singapore Energy and Chemical’s sector to reduce emissions in the long-term, and the near- term technical and economic barriers hindering the large-scale deployment of CCUS solutions.
Key findings from the study had found some potential CCUS carbon dioxide (CO2) utilisation pathways subject to further technological advancements and cost reductions before they could become commercially viable and deployable.
To drive its low carbon emission ambition, Singapore had announced plans in July 2021 that the public sector will reduce carbon emissions five years before the rest of the nation. It will increase the country’s use of solar energy to 1.5 gigawatt-peak, equivalent to powering more than 260,000 households a year by 2025.
The Government said it would install solar panels where feasible on all public sector premises.
The major oil companies are already under a lot of pressure to address their carbon footprint issues, with governments around the world pressing for quick action and greater transparency.
They are said to be looking into scaling up CCS technology, not just to bury their own emissions, but also offer it to other carbon- heavy industries.
Most of the bigger EPCs have in recent years built resilience into their operations by responding to the shift by oil and chemical majors towards low carbon emission and new energies, as well as incorporating more digital systems into their processes.
They have pivoted to using their expertise and technology to support the aspirations of operator-owner clients in renewables, carbon- free energy, post-combustion capture, and conversion of conventional oil and gas facilities to achieve low-carbon ambitions.
For example, Worley said its sustainability pivot has provided the structural framework for future growth.
“The contribution of sustainability projects is already sizeable, delivering US$1.2 billion of revenue in H1 FY21, around 30% of Group revenue. Energy transition and circular economy opportunities in particular are accelerating, and we have seen our factored sales pipeline increase in this area from 11% to 18% of total opportunities since November 2020,” the company said in its first-half 2021 results statement.
Worley said it is well positioned to capture sustainability opportunities that are accelerating across all its business sectors.
Technip Energies in its 2020 annual report said it “continues to break boundaries and accelerate the journey to a low-carbon society”.
“Technip Energies has structured its energy transition framework around four pillars: LNG, sustainable chemistry, decarbonization and carbon-free energy solutions,” it added.
In its 2020 annual report Wood said the Board believed that it plays a vital role in addressing climate change through the technical solutions it provides to clients.
“These solutions include wind, solar, carbon capture and storage, hydrogen, and waste to energy, as well as solutions to help
JEL Maintenance workers installing solar panels
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