from the ground Up

by Jessica Cheam, The Straits Times, September 26 2008

NORWAY is now Singapore’s sixth largest foreign investor, as increasing numbers of firms from the Scandinavian nation site their operations here.
Foreign direct investment from Norway stood at $14.8billion in 2006, up from $8.6billion in 2005, according to the Department of Statistics.
While both nations are starkly different in sectors such as climate and energy – Norway is an energy exporter; Singapore is an importer – there are many similarities to drive economic convergence.
Mr Odd Sverre Haraldsen, director-general of Norway’s Petroleum and Energy Ministry, pointed out yesterday that both nations are strong in technology and research and development (R&D).
They have similar populations and have developed similar industries, such as oil and gas, shipping and other energy sectors, added Mr Haraldsen, who was in town for the inaugural Norway-Singapore Energy Conference.
The increasing presence of Nordic firms here was boosted by Renewable Energy Corporation (REC), which picked Singapore from more than 200 locations as the site for what will be the world’s largest integrated solar manufacturing plant.
“REC’s investment opened a new area of cooperation with Singapore. We hope that this will continue,” Mr Haraldsen told the conference at the Shangri-La Hotel.
REC has started building the initial $3billion phase of the $6.3billion Tuas plant, said REC senior vice-president Oyvind Hasaas.
The firm launched a recruitment drive – called Here Comes The Sun – here recently, and was inundated with 3,500 applications for just 120 advertised jobs.
“I’m very impressed by the interest Singaporeans have in our business,” said Mr Hasaas.
The firm expects to employ 1,300 locals once operations begin in 2010.
Although construction costs have been rising, the plant is still on track and the price hikes are “within our expectations”, added Mr Hasaas.
Other Norwegian firms here include energy firm StatoilHydro, which has a Singapore office dealing with crude oil, refined products and natural gas liquids.
Carbon capture and storage (CCS), which involves capturing and storing carbon dioxide emissions underground, was also singled out by Mr Haraldsen as an upcoming technology that both countries could work on.
Professor Chou Siaw Kiang, executive director of local think-tank Energy Studies Institute, told the conference that Singapore could participate in CCS as it involved a high degree of technology and R&D.
He said that besides the solar industry, other sectors on the Singapore “watch list” included wind and nuclear energy.
Nuclear energy is “not inconceivable” as Malaysia and Indonesia have already expressed interest.
“While no one wants nuclear plants in their own backyard, it is a real alternative energy,” said Prof Chou. “The question is, how will Singapore participate in this? We are studying some of these issues at the moment.”

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NORWEGIAN firm Renewable Energy Corporation (REC) has yet to start operations at its Singapore plant, but some of its solar modules have already been earmarked for roofs here.
Its modules will be used in Singapore’s largest solar installation – spanning
2,780 sq m – commissioned by Swiss pharmaceutical manufacturer Lonza Biologics.
Lonza awarded the million-dollar contract to Singapore-based Phoenix Solar yesterday at the inaugural Norway-Singapore energy conference.
Phoenix Solar, a unit of Germany’s Phoenix Solar, will install a 181 kwp (kilowatt peak) solar system on Lonza’s $480 million Tuas facility, which is due for completion next June.
The solar installation system will eventually supply about 4 per cent of the plant’s energy needs.