Rolls-Royce and Microsoft have jointly published a position paper advocating for the adoption of Hydrotreated Vegetable Oil (HVO) as a sustainable backup power solution for Singapore’s data centres. The paper aligns with Singapore’s Green Data Centre Roadmap and its net-zero 2050 targets, emphasising the need for immediate action to decarbonise the critical infrastructure supporting the digital economy and AI.
The position paper outlines several key areas, including the urgent need for HVO as a readily deployable solution compatible with existing infrastructure. It also calls for regulatory clarity to drive adoption through harmonisation, certification, and incentive schemes. The paper stresses the importance of partnerships between multinational corporations to advance Singapore’s innovation and sustainability goals.
HVO offers significant environmental benefits, including up to a 90% reduction in CO2 emissions and an 80% reduction in particulate matter compared to conventional diesel. It is also free from aromatic compounds, which are harmful to both health and the environment. Importantly, HVO can be used in existing diesel generators without major modifications, making it a practical choice for data centres.
Despite its advantages, HVO remains two to three times more expensive than fossil diesel, posing a barrier to widespread adoption. The paper suggests that targeted regulatory support, similar to the Maritime and Port Authority’s Green Ship Programme, could help bridge this cost gap. By doing so, Singapore could position itself as a hub for certified renewable fuels, attracting global investment and enhancing its role in the regional energy transition.
The collaboration between Rolls-Royce and Microsoft underscores a commitment to reducing operational emissions and fostering a sustainable data centre ecosystem. The paper concludes that a collaborative approach involving industry stakeholders and policymakers is essential to accelerate the transition to low-carbon solutions, thereby advancing Singapore’s climate objectives and economic growth.
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