Keppel to develop Singapore’s first hydrogen-ready power plant

KEPPEL Infrastructure Holdings, via its unit Keppel Energy, is developing Singapore’s first hydrogen-ready power plant, which will cost S$750 million.

The 600 megawatt (MW) state-of-the-art, advanced combined cycle gas turbine (CCGT) power plant will be constructed by a consortium comprising Mitsubishi Power Asia Pacific and Jurong Engineering, and will be located on Jurong Island. Mitsubishi Power was also awarded a long-term service contract for major maintenance of the turbine. 

In line with Keppel’s asset-light business model, the plant will be owned by Keppel Sakra Cogen (KSC), which is a wholly-owned indirect subsidiary of Keppel Infrastructure. Keppel Asia Infrastructure Fund and Keppel Energy will hold stakes of 70 per cent and 30 per cent in KSC respectively. KSC and Keppel Energy will also ink a turnkey contract for the development of the plant. 

This comes as Singapore is striving to decarbonise electricity generation as part of efforts to fight climate change. While it will run initially on natural gas as primary fuel, the Keppel Sakra Cogen Plant will be designed to operate on fuels with 30 per cent hydrogen content, and will have the capability of shifting to run entirely on hydrogen, Keppel said. It will also be able to produce steam, for use in industrial processes by energy and chemicals companies on Jurong Island. The plant is slated to be completed in H1 2026.

According to Keppel, the CCGT will be the most efficient among the Republic’s operating fleet and will be able to save up to 220,000 tonnes of carbon dioxide annually, equivalent to taking 47,000 cars off the road each year.

Meanwhile, Keppel New Energy, a unit of Keppel Infrastructure, has also signed a memorandum of understanding with Mitsubishi Heavy Industries to carry out a feasibility study on the development of a 100 per cent ammonia-fuelled power plant in Singapore.

Cindy Lim, CEO of Keppel Infrastructure, said: “The 600MW Keppel Sakra Cogen Plant will be Singapore’s first hydrogen-ready and most advanced, high-efficiency combined cycle gas turbine power plant. When completed, this asset will grow Keppel’s power generation portfolio from the current 1,300 MW to 1,900 MW, allowing us to capture a larger market share as the demand for reliable energy continues to rise with Singapore’s economic development.” 

Shares of Keppel Corp closed at S$7.19 on Tuesday (Aug 30), up S$0.04 or 0.6 per cent.