KEPPEL Data Centres and Shell on Friday (Oct 28) signed a memorandum of understanding to study the feasibility of developing a low-carbon energy hub and microgrid system in Singapore.

The two entities plan to leverage each other’s expertise to explore the commercial and technical practicalities of establishing a low-carbon energy hub that can power both their assets. 

Sustainable energy sources – such as imported renewable power and hydrogen that is either imported or locally produced – are key considerations for the hub. The hub is also planned to be developed around energy-related infrastructure components, with a self-contained power supply system called a microgrid system at its core.

Keppel Data Centres – the data centre unit of Keppel Corporation : BN4 0% – and Shell will also explore scaling and exporting the project to overseas markets.

Wong Wai Meng, chief executive of Keppel Data Centres, said: “Our collaboration with Shell presents new opportunities to design innovative solutions and potential game-changers in making data centre operations carbon neutral as we help our clients on their journeys to net zero.” 

He also mentioned that the company is committed to making its operations more sustainable through “a broad range of low carbon energy technologies”.

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“Energy transition requires all of us to keep finding innovative ways to cut emissions and develop a cleaner energy system,” said Thomas Wong, general manager of Shell Energy and Chemicals Park Singapore. 

“We look forward to working with our customers and partners, such as Keppel Data Centres, to look into low-carbon solutions so that we can decarbonise together.”

Wong added that Shell has started lowering its emissions through the ongoing transformation of the Shell Energy and Chemicals Park Singapore, as well as planned investment in circular chemical and low-carbon product production.