1Corporate and Capital Markets

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1 INTRODUCTION Many people have negative perceptions of the word nuclear, feelings that have been compounded from nuclear disasters at Three Mile Island, Chernobyl and Fukushima. However, Singapore as a resourceconstrained nation with limited energy options cannot afford to base its energy system decisions solely on emotions and reject the possibility of harnessing nuclear as a future energy source which has the potential to meet Singapore s increasing energy demands while reducing its carbon footprint. BRIEF FACTS Nuclear energy is a clean source of energy that has the potential to produce abundant energy supply to meet the increasing energy needs of Singapore. Singapore will experience an increasing demand for energy as its economy continues to develop, and this demand will become more acute with the rise of new technologies as part of the Government s Smart Nation initiative to harness technology to support better living and productivity. Currently, Singapore is heavily reliant on imported natural gas and liquid natural gas for its energy needs. However, as its energy demand increases, Singapore has to explore new energy sources whilst fulfilling its commitment under the Paris climate change agreement to reduce its carbon emissions by 36 per cent from 2005 levels by While renewable energy such as solar energy can augment Singapore s energy supply, reliance on renewable sources to generate sufficient electricity reliably is a challenge because of Singapore s physical constraints and the fact that renewables are unable to generate electricity on demand. 2 Nuclear energy on the other hand has the potential to resolve Singapore s energy dilemma. Nuclear energy emits no greenhouse gas emissions during the production of electricity. 3 More importantly, nuclear power has the potential to generate sufficient baseload energy to meet Singapore s future energy demand, noting that 1 gram of uranium is equivalent to 1.8 million cubic meters of oil and 3 million grams of coal. 4 SINGAPORE NOT READY NOW FOR NUCLEAR ENERGY BUT CANNOT DISMISS IT ALTOGETHER PAGE2 P2 Although the Singapore Government has no plans presently to build nuclear power plants, the Government emphasised the importance of monitoring the progress of nuclear energy technologies to keep Singapore s energy options open for the future. In 2010, the Singapore Government conducted a pre-feasibility study on nuclear energy, which concluded that current nuclear energy technologies are not safe enough

2 to be deployed in Singapore given its small geographical size and high population density. 5 Most traditional nuclear power reactors in the world are situated some 30 to 50 km from the nearest city centre. 6 It is difficult for Singapore to adhere to this international practice, given that Singapore only stretches around 50 km east to west and 25 km north to south. 7 Nonetheless, Singapore cannot dismiss the possibility of nuclear energy altogether. The study recommended that Singapore monitors the development of nuclear energy technologies and support research in nuclear science and technology to keep its energy options open for the future. 8 ENERGY SOURCE A. NUCLEAR PROGRAMME JOINT VENTURE To address the safety concerns of deploying nuclear reactors in small and dense Singapore, Singapore can import electricity generated from nuclear reactors housed in neighbouring ASEAN nations as part of a nuclear programme joint venture. Singapore can look to the Daya Bay Nuclear Power Plant as an example of a successful and safe nuclear energy partnership between China and Hong Kong. The Daya Bay Nuclear Power Plant is built in Guangdong, China, and 70 per cent of the electricity generated is supplied to Hong Kong and the remaining to Guangdong province. 9 In return for importing electricity generated from nuclear reactors housed overseas, Singapore can contribute to the high capital investment for construction of the plants and offer its nuclear knowledge and capability to facilitate the operation of the plants. The countries hosting the nuclear power plants can also benefit by selling electricity generated from the plants to Singapore at a premium and using the revenue generated to defray the costs of operating the plants or to subsidise the cost of nuclear energy domestically. Singapore also stands to gain from a nuclear programme joint venture. Clearly, such a joint venture addresses the safety and security concerns of having nuclear power plants in Singapore and allows Singapore to diversify its energy mixing by tapping on nuclear energy, whilst fulfilling its commitment under the Paris agreement to reduce its carbon emissions. As various ASEAN nations such as Indonesia, Malaysia, and the Philippines are planning or considering integrating nuclear energy into their energy mix, the region s push for nuclear energy provides an opportune time for Singapore to enter into a nuclear programme joint venture. PAGE3 P3 However, a nuclear programme joint venture is not without its challenges. Although many ASEAN nations are pushing for nuclear

3 energy, the region s nuclear energy plans have frequently been met with local resistance due to safety concerns over nuclear power. It also remains to be seen how the cancellation of Vietnam s plans to build nuclear power plants will impact the nuclear energy outlook in ASEAN given that Vietnam s nuclear programme was the most advanced in the region. 10 Nonetheless, the notion of a nuclear programme joint venture need not be ruled out forever given that it is in line with ASEAN s commitment to achieve an integrated ASEAN power grid system, which aims to enhance electricity interconnectedness between ASEAN nations. 11 The development of shared power grids in ASEAN paves the way for a nuclear programme joint venture as ASEAN nations can build on the existing power grids for the necessary infrastructural support required for the nuclear joint venture. B. LIQUID FLUORIDE THORIUM REACTORS (LFTRS) LFTRs are safer than traditional nuclear reactors. LFTRs may be more suitable for deployment in Singapore compared to traditional nuclear reactors. Unlike traditional nuclear reactors that use pressurised water to cool uranium fuel rods, LFTRs use a mixture of low operating pressure molten salt to cool the reactors. Crucially, as LFTRs are not pressurised reactors, the use of LFTRs to generate electricity eliminates the possibility of a hydrogen explosion that can damage the containment of reactors, resulting in leakage of radioactive materials. Furthermore, the greater fuel efficiency of LTFRs compared to traditional nuclear reactors results in LFTRs producing higher energy and less waste than traditional nuclear reactors. While LFTRs may be a sustainable energy source for Singapore in the future, it requires a lengthy period of capability development. 12 Singapore can consider participating in LFTR development programmes with countries such as China, which are pursuing this technology, so as to study how LFTRs can be safely deployed in Singapore. 13 C. ADVANCED SMALL MODULAR REACTORS (SMRS) PAGE4 P4 SMRs may also be a long-term solution for Singapore s energy woes. SMRs are akin to portable reactors and the idea is that SMRs will be grouped together to generate the amount of power required. Because each of the SMR is self-contained, the use of SMRs reduces the likelihood of a large scale nuclear meltdown experienced by traditional nuclear reactors. 14 Consequently, there is a possibility that SMRs can be safely deployed in Singapore despite Singapore s small geographical size as SMRs may not need to adhere to the international practice of a 30 to 50 km safety radius that applies to traditional nuclear reactors. For additional security, the SMRs can be installed on the many small islands of Singapore that are isolated from homes and commercial districts. However, as the technology behind SMRs is new, it remains to be seen if SMRs

4 actually work in practice and can be safely deployed. In the meantime, the Singapore Government can consider collaborating with countries such as the US, where its Department of Energy has provided substantial support for the development of SMRs in the US, to study the feasibility of deploying SMRs in Singapore. 15 PUBLIC COMMUNICATION AND EDUCATION If Singapore decides to integrate nuclear energy into its energy mix, it is important for the Government to educate the public in advance that nuclear power, if carefully designed and managed, can actually be a safe and clean source of energy. This is because public opinion matters in making Government decisions whether to use nuclear energy as nuclear safety entails socio-political implications that concern the public. CONCLUSION Whilst the current generation of nuclear technology is not suitable for Singapore, Singapore as a small nation with limited energy options cannot afford to dismiss the possibility of tapping nuclear energy as a future energy source. Singapore should continue to monitor the nuclear energy developments in ASEAN and engage with its neighbouring nations to consider the possibility of a joint nuclear energy programme. Singapore should also explore participation pathways with countries that are currently researching new nuclear power technologies such as LFTRs and SMRs so as to study how these nuclear technologies can be safely deployed in Singapore. At the same time, the Singapore Government should commit to promoting basic knowledge to the public about nuclear power to dispel any misconceptions about nuclear energy as public acceptance is an important consideration before Singapore decides to integrate nuclear energy into its energy mix. PAGE5 P Andrew Palmer, Seeram Ramakrishna and Hassan Muzaffar Cheema, Nuclear power in Singapore (4 May 2010), p 6. 8

5 WeGY3GdlKM For more information, please contact: Azman Jaafar Head, Corporate (65) (The author is grateful to practice trainee Kendrick Deng Zhaoguo for his assistance for this article.) PAGE6 P6