Singapore and Korea to collaborate more on energy transition tech
Oleh Si Ying Thian
Southeast Asia needs more investments in energy infrastructure, and Singapore could be a springboard for Korean companies to tap on the former’s R&D expertise and access to the region.
President of the Republic of Korea, H.E. Yoon Suk Yeol delivering a keynote speech at the Singapore-Korea Business Forum on October 8. Image: Singapore Business Federation
Five out of 10 agreements signed at the Singapore-Korea Business Forum, held on October 8, involved either one or both South Korean and Singapore government entities. These included Singapore’s Energy Market Authority (EMA), Korea Energy Technology Evaluation and Planning (KETEP), A*STAR and more.
The signed memorandums of understanding (MoUs) were centred on cooperating in renewable energy research and development (R&D) and energy supply chain resilience.
Co-organised by the Singapore Business Federation and the Korea Chamber of Commerce and Industry, the forum was attended by South Korea President, Yoon Suk Yeol, and Singapore’s Second Minister for Trade and Industry, Dr Tan See Leng.
The last forum, held in 2018, focused on smart manufacturing and technologies driving the fourth industrial revolution, including artificial intelligence (AI), Internet of Things (IoT), robotics and more.
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Digital economy, green energy tech in focus
Digital technologies, such as AI, digital payments and digital identities, continue to play a strong role in this partnership.
Over the last two years, Singapore and South Korea have entered into bilateral and multilateral agreements around the digital economy, namely Singapore’s fourth Digital Economy Agreement (DEA) signed last January, as well as the Digital Economy Partnership Agreement (DEPA), which South Korea joined this May.
The trade agreements seek to address digital trade issues and promote interoperability in the digital systems of the two countries. These systems include digital identity, digital payments, cross-border data flows and more.
Another area of cooperation is green energy. At the forum, Deloitte Consulting’s Executive Director, Seongjin Lee, underlined the potential of both countries to collaborate on a hydrogen grid to achieve economies of scale in energy production.
Similarly, Singapore’s Minister Tan puts forward what he called a “compelling” case for Korean companies to “use Singapore as a springboard to access the ASEAN market.”
He highlighted the International Energy Agency (IEA)’s estimation that ASEAN will require investments of US$21 billion (S$28 billion) annually from 2026 to 2030 to improve its energy infrastructure.
According to Lee, Singapore and South Korea started discussions around collaborating on hydrogen energy since 2018, and both countries have declared commitments to develop hydrogen energy to meet Net-Zero by 2050.
Singapore is looking to hydrogen to supply half of its power needs by 2050, while the South Korean government has been working with the private sector to boost its hydrogen economy.
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Leveraging complementary strengths
Both government speakers at the forum reiterated the importance of leveraging the complementary strengths of their countries.
“As the world grapples with the challenges of sustainability and technological disruption, Singapore and Korea are well-positioned to deepen collaboration in the areas of energy transition, research and innovation,” said Minister Tan at the forum.
According to Asian Insiders, one of the key obstacles facing Korea’s hydrogen economy is the lack of knowledge and technology to fill existing gaps.
Deloitte’s Lee pointed to Singapore’s expertise in R&D talent and funding, as well as outreach in Southeast Asia. He highlighted that Singapore has invested more than S$180 million (US$138 million) in R&D for low-carbon technology, including hydrogen energy.
President Yoon also highlighted Singapore’s friendly business environment and its global outreach with links to 600 ports in over 120 countries.
For its part, South Korea has strong technical capabilities, especially in semiconductors and next-generation vehicles, he added. Semiconductors control electrical currents, and are key components for converting, storing and managing renewable energy in the grid.
Lee shared that South Korean companies are also adept in developing end-to-end hydrogen solutions customised for the local environment and capability.
Last November saw a MoU signed between both governments to collaborate on a few areas related to energy and climate change, which include standards and certifications, energy technologies, and more.