$2.5b solar plant in Singapore marks 'new dawn'

One of world's largest, it is 'key piece' of S'pore's clean energy strategy
Jessica Cheam Straits Times 4 Nov 10;

ONE of the world's largest integrated solar plants opened in Singapore yesterday, marking a milestone in the country's growing clean technology industry.

Its $2.5 billion price tag makes it one of the largest investments ever in Singapore and a 'key piece in Singapore's clean energy strategy,' said Prime Minister Lee Hsien Loong, who officiated at the opening of the new complex by Norwegian firm Renewable Energy Corporation (REC) in Tuas.

The cleantech sector, identified as a major pillar of growth for Singapore, is expected to contribute $3.4 billion to gross domestic product by 2015 while providing 18,000 jobs.

REC chief executive Ole Enger called yesterday's opening of the plant's first phase 'a new dawn' for the company and Singapore's solar industry .

It caps a three-year journey since the firm first announced a $6.3 billion integrated solar manufacturing plant in Singapore in 2007.

REC's facility, which sits on a 321,000 sq m site, produces more than 190,000 solar modules per month, which are exported to the European and American markets.

The modules are used in solar energy systems which generate electricity from the sun's rays.

Mr Enger noted that demand from Asia is increasing, such as from Japan, Taiwan, South Korea and more recently, China and India.

REC's plant was considered a major coup for the Economic Development Board when Singapore trumped 200 other locations to clinch what economists called a 'queen bee' investment - the world's largest plant at that time.

Such big investments spur an industry eco-system of companies. Singapore has developed several world-class industries by clustering firms with complementary strengths, and this model has been applied to the clean energy sector, said Mr Lee.

It took the plant only 18 months after construction began in June 2008 for the first solar module to be produced.

But the project was not without challenges. A few months after building began, Oslo-listed REC was hit by the global financial crisis. But support from shareholders, banks and the Singapore Government helped to see the project through, said Mr Enger.

The project even came in under its initial budget of $3 billion for the first phase.

Singapore's skilled workforce, especially in semiconductor industry capabilities, was a key reason why REC decided to set up shop here.

The firm received 35,000 applications for just one advertisement.

To date, it has hired 1,500 workers in Singapore and will employ up to 1,700 as production ramps up.

Mr Lee yesterday acknowledged the Singapore worker as the Republic's 'most critical strength'.

'We've got to work hard to maintain this advantage,' said Mr Lee, adding that the Government is pumping billions of dollars to encourage workers to upgrade their skills.

The modules produced by REC's new plant for the whole of next year could offset 25 million tonnes of carbon dioxide emissions throughout its lifetime or produce enough electricity to meet the yearly energy needs of 150,000 Singaporean households.

Mr Enger said expansion plans for the plant will be considered after next year.

Singapore to train more clean energy specialists, says PM Lee
Joanne Chan Channel NewsAsia 3 Nov 10;

SINGAPORE : Singapore will ramp up plans to develop manpower for the clean energy industry, and will train over 2,000 specialists in the next five years.

Prime Minister Lee Hsien Loong said this at the opening of a new S$2.5 billion solar manufacturing facility - the largest clean tech investment ever made in Singapore.

Singapore identified clean energy as a major growth area for the economy in 2007. And it is committing some S$350 million to support this effort.

Mr Lee said: "There is not yet a global deal on climate change, but many countries worldwide are studying various clean energy options, pursuing all possibilities, seeking a breakthrough. But Singapore can position ourselves for this long-term development, contributing to global energy solutions while tapping the economic spinoffs."

Mr Lee said the strategy to grow the sector has been to attract high-value investments in manufacturing and build strong research and development capabilities.

The Solar Energy Research Institute of Singapore (SERIS) was launched in 2008 and has embarked on research projects with leading industry players.

A critical component in attracting investments to Singapore is a skilled workforce.

Mr Lee said more clean energy specialists will be trained in the universities and polytechnics here.

There will also be Continuing Education and Training programmes by the Workforce Development Agency.

Norwegian company Renewable Energy Corporation (REC), which has set up its solar panel manufacturing facility, said the Singapore worker was a major lure.

Ole Enger, the CEO of Renewable Energy Corporation, said: "We selected Singapore for the reason that you have very competent people here, and the second reason being that we are very happy with the Singapore government."

Some 200 sites were considered before Singapore was selected as the location for the manufacturing facility. This state-of-the-art complex spans 321,000 square metres.

When fully operational, the plant and onsite suppliers will generate 1,700 jobs.

1,500 people are currently employed and REC said it is still recruiting.

The Singapore plant is one of the world's largest integrated solar manufacturing facilities.

Solar panels assembled here will be exported to countries such as Europe and the United States. - CNA/wk/ms