SCAO ENERGY TRANSFORMATION BUSINESS UNIT
Join us on an exciting journey towards energy transition!
The Energy Transformation Business Unit (EX BU) was newly set-up in April this year. What is the objective of setting up this new BU and what is the synergy you are trying to create?
Mirroring the reorganisation in Tokyo, SCAO established the EX BU in April 2024 to drive our shift toward a strategy-focused growth model. By centralising all power and energy functions within one unit, we are enhancing our company’s value and working toward becoming the top provider of energy solutions that meet both market and customer needs. The EX BU comprises two core departments: the Energy Department and the Power & Energy Innovation Initiative Department. This integrated structure empowers us to lead energy transformation efforts with specialised expertise, while fostering collaboration to address complex energy challenges more effectively. We recognise that such an approach is particularly crucial for us to establish a strong market presence and meet the ever-growing energy demands in the Asia & Oceania region.
The synergy within the EX BU is rooted in collaboration and cross-functional integration to maximise our collective strengths. It unites vertical initiatives, like developing next-generation energy solutions, with horizontal efforts to drive green and decarbonisation initiatives across the company. This cohesive approach strengthens not only the EX BU but also enhances the capabilities of other business units, benefiting the entire organisation as we grow. By connecting our expertise, we are bolstering our global competitiveness and advancing our commitment to sustainable growth. Ultimately through such efforts, we aim to clinch the No. 1 spot in our own areas across the energy sector, in line with our company’s Medium-Term Management Plan 2026.
SCAO EX BU team members
Please share 3 exciting energy transformation projects that EX BU is working on. How will EX BU tackle challenges and seize opportunities arising from the global shift towards net zero? How will EX BU collaborate with other BUs to scale greater heights?
EX BU is poised to tackle the challenges and seize opportunities arising from the global shift towards net zero through a multifaceted strategy. By integrating its talents and expertise across Energy, Energy Innovation Initiative (EII), and Power Infrastructure functions, EX BU aims to create a cohesive organisation that delivers unique value and meets market and customer demands effectively. We are contemplating energy solutions such as LNG-to-power, ammonia bunkering, and floating power generation with carbon capture and storage (CCS) technologies, among many others. To strengthen our market presence, we are committed to understanding the energy policies of different countries and building strong relationships with governments and leading companies throughout the Asia Pacific region. This approach enables us to propose tailored solutions that foster economic growth and enhance energy security.
In the short term, EX BU will focus on fulfilling energy security through the use of natural gas as a transition fuel. In the long term, our vision is to redesign energy systems that will pave the way for next-generation energy sources and contribute to societal decarbonisation.
We also place a strong emphasis on fostering a culture of respect and open dialogue within the team, which encourages diverse perspectives and innovation. Our ultimate goal is to maximise financial returns while also making a positive impact on the society. This commitment will guide our strategic initiatives and operational effectiveness as we navigate the complexities of energy transition and decarbonisation.
EX BU is currently focusing on the following projects and initiatives:
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Low or Zero Carbon Ammonia End Use for Bunkering in Singapore
Maritime shipping accounts for nearly 3% of global CO2 emissions, and the industry has set a target to cut its greenhouse gas emissions by at least 50% by 2050. Ammonia, with its high hydrogen density, is emerging as a promising fuel alternative for decarbonising vessels. As a leading global bunker hub, the Maritime and Port Authority of Singapore (MPA) has been facilitating a formal selection process to identify the best proponent for developing low- or zero-carbon ammonia bunkering solutions on Jurong Island. EX BU is excited to share that we have so far made it through two rounds of shortlisting and are now focused on being chosen as the preferred candidate by the first quarter of 2025. Please refer to MPA’s press release or approach members of the Energy Department for more information regarding the project.
Figure: Ammonia Bunkering Concept at the Port of Singapore
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Bioenergy Project in India
Bioenergy offers competitive drop-in alternative for both road and air transport decarbonisation pathways. India is a success story of biofuel / biogas use in their transport sector with target to blend 20% of bioethanol in their gasoline pool mix by 2025 and 5% of biomethane in their CNG mix by 2028. Being the largest agrarian nation in Asia, India hosts abundant biomass feedstock (40-60 million metric tonne), helping India push towards a wider adoption of bioenergy in the country. With such prospects, we have recently signed a Memorandum of Understanding with Trualt Bioenergy Limited, a leading player in the bioenergy sector. The partnership seeks to drive the development of various bioenergy-related initiatives in India, starting with biomethane production units and expanding into bioethanol, sustainable aviation fuel and biochemicals.
MoU signing ceremony between SCAO, MRN Group and Trualt Bionergy for the India Bioenergy Project
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Energy Project Opportunities in Sarawak
It’s been a dynamic and exciting time in Sarawak, Malaysia. Our H2ornbill Project, designed to produce 50 kilotons of green hydrogen annually for export to Japan in the form of methylcyclohexane (MCH), is currently in the Front-End Engineering Design (FEED) and due diligence phases in collaboration with the Sarawak government agency (SEDC Energy) and ENEOS. Additionally, we are advancing an e-Methane project study in partnership with PETRONAS and Tokyo Gas.
Looking ahead, a cross-BU initiative is underway to study the development of Kuching as a Low Carbon Solutions Hub. This initiative is aimed at strengthening energy security for Kuching and Sarawak and providing low carbon energy solutions to potential investors such as data centers and semiconductor players. This aligns with the EX BU’s mission to “realise stable and sustainable energy and carbon cycle systems for creating a society full of prosperity and dreams.”
Figure: Conceptual Blueprint of the Kuching Low Carbon Solutions Hub
See our exciting business activities here!
Gaston with Advario at MAN Energy Solutions Research Centre (Copenhagen, Denmark) to witness the demonstration of ammonia two-stroke engines for vessels
Energy department members with Maritime Energy Solution SBU Colleagues at Sumitomo’s Inaugural Global Maritime Summit (Tokyo, Japan)
SCAO EX BU members with Keppel, Advario, Maritime & Port Authority of Singapore and the Energy Market Authority of Singapore at Singapore Maritime Week 2024
SCAO EX BU members with Eastern Pacific Shipping and Advario, at a site visit to Advario Helios Terminal on Jurong Island, Singapore
Gaston with K-Line and Advario visiting the ammonia-fuelled green pioneer vessel
Louis with Yinson Onboard FPSO John Agyekum Kufuor (Offshore Cape Three Points Area, Ghana)
SCAO delegation visiting Nirani Sugar Ltd Unit 1 (Mudhol, Karnataka, India)
Meet our friendly members!
SCAO EX BU members at SCAO’s bowling event
SCAO EX BU members taking a casual wefie with SC President and CEO Mr Shingo Ueno during the SCAO Townhall in November 2024
This article is contributed by
Gerard Man
Deputy General Manager
Energy Department
Asia & Oceania Energy Transformation Business Unit