Singapore has launched its largest funding initiative yet for industrial decarbonisation research. The S$143 million Industry Decarbonisation Funding Initiative will back low-carbon technologies for the country’s industries. Deputy Prime Minister Gan Kim Yong announced it at the inaugural Singapore Industry Decarbonisation Forum 2026.
Manufacturing and other industrial activities account for nearly two-thirds of Singapore’s emissions. Petrochemical production, refining and fuel combustion are especially hard to cut. Limited land and resources also rule out some solutions at scale. Officials say targeted R&D is needed to adapt technologies to local conditions.
The initiative is led by the Economic Development Board (EDB) and the Advanced Energy and Decarbonisation Office. It focuses on three areas. The first is carbon capture for low to mid-concentration carbon dioxide streams. The second is carbon utilisation, which turns captured carbon dioxide into chemicals and other products, building on Singapore’s energy and chemicals sector. The third covers emerging technologies such as carbon storage, electrified industrial heating and cuts to non-CO2 emissions from processes like semiconductor manufacturing.
Up to S$100 million is reserved for a new programme called DRIVE. Companies, including start-ups, can design R&D projects with public research institutions. The government will co-fund up to 75% of qualifying costs. Applications opened on 23 October.
EDB Managing Director Jermaine Loy said the initiative brings companies and researchers together to tackle real industrial challenges. He stressed that solutions must be both effective and commercially viable.
Other announcements followed. TotalEnergies and A*STAR’s Institute of Sustainability for Chemicals, Energy and Environment signed an agreement to explore carbon utilisation research. EDB and the office also formed new partnerships with Extantia, Main Sequence and Rocky Mountain Institute.
The office also awarded S$65 million to five projects under its scale-up grant. They involve partners including Chevron, YTL PowerSeraya, Siemens, the National University of Singapore and A*STAR. The funding will help scale the technologies in real industrial settings.
