Keppel Infrastructure Holdings has announced that it will develop Singapore’s first hydrogen-ready power plant on Jurong Island, with construction to be undertaken by a consortium comprising Mitsubishi Power Asia Pacific and Jurong Engineering.
An engineering, procurement and construction (EPC) contract was signed between Keppel Energy, a wholly-owned subsidiary of Keppel Infrastructure Holdings and the consortium on Aug 30 for the construction of the plant. A long-term service (LTS) contract for major maintenance of the turbine was also awarded to Mitsubishi Power Asia Pacific.
The plant will be owned by Keppel Sakra Cogen (KSC), presently a wholly-owned indirect subsidiary of Keppel Infrastructure. It is intended that Keppel Asia Infrastructure Fund LP (KAIF) and Keppel Energy will hold 70% and 30% equity interests in KSC respectively. In addition, KSC and Keppel Energy are scheduled to enter into a turnkey contract for the development of the Keppel Sakra Cogen Plant.
In addition to the EPC and LTS contracts, Keppel New Energy, a wholly-owned subsidiary of Keppel Infrastructure, has also signed a memorandum of understanding (MOU) with Mitsubishi Heavy Industries to carry out a feasibility study on the development of a 100% ammonia-fuelled power plant on a selected site in Singapore.
“This collaboration seeks to address the energy trilemma and contribute to building a more resilient and sustainable energy sector in Singapore and the region,” writes Keppel in a joint press release with Mitsubishi Power and Jurong Engineering.
Christina Tan, CEO of Keppel Capital, the parent company of the manager of KAIF, says: “The joint investment by Keppel Infrastructure and KAIF in the Keppel Sakra Cogen Plant reflects the Keppel Group’s asset-light business model as we seize opportunities in the energy transition.”
The Keppel Sakra Cogen Plant, which is expected to be completed in the first half of 2026, will be designed to operate on fuels with 30% hydrogen content with the capability of shifting to run entirely on hydrogen, although it will initially run on natural gas as its primary fuel. The advanced combined cycle gas turbine (CCGT) power plant will also be able to produce steam for use in industrial processes for the energy and chemicals customers on Jurong Island.
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Cindy Lim, CEO of Keppel Infrastructure, says: “The 600MW Keppel Sakra Cogen Plant
will be Singapore’s first hydrogen-ready and most advanced, high-efficiency combined cycle
gas turbine power plant, placing Keppel Infrastructure at the forefront of the effort to
decarbonise Singapore’s power sector.”
According to Keppel, this advanced CCGT will be the “most efficient” among the operating fleet in Singapore and will be able to save up to 220,000 tons per year of CO2, compared to Singapore’s average operating efficiency for equivalent power generated, and equates to CO2 savings of removing some 47,000 cars from the road per year.
With the energy sector accounting for almost 40% of Singapore’s carbon emissions, Keppel says that decarbonising electricity generation is at the core of the global climate change effort and one of the key features of Singapore’s Green Plan.
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Tan says: “We believe that hydrogen, as a low-carbon fuel, will play a critical role in supporting Singapore’s commitment to decarbonise its power sector. Keppel Capital will continue to leverage the synergies of the Keppel Group to identify and invest in such future-ready projects to create value for our investors.”
“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,” adds Lim.
Shares in Keppel Corporation closed 4 cents or 0.56% up at $7.19 on Aug 30.
