Keppel Limited and Australian energy company Woodside have signed a conditional offtake term sheet for the supply and purchase of liquid hydrogen, announced Keppel on Oct 21.
The term sheet follows the signing of a non-binding heads of agreement between both companies in April 2023. It tables commercial principles that may lead the way for an eventual binding offtake agreement for the supply of liquid hydrogen from as early as 2030. The source of the liquid hydrogen would include Woodside’s proposed production facilities, including H2Perth.
According to Keppel, it intends for the potential supply to power its data centres and to form part of a larger and long-term utility-scale lower carbon power portfolio that the group is building to power its assets.
“We’re pleased to be working with Keppel on the potential for supply of lower carbon energy in the form of hydrogen to their data centres in Singapore. This opportunity builds on Woodside’s track record of being a safe and reliable supplier of energy to Asia for 35 years,” says Woodside CEO Meg O’Neill, who called the signing of the term sheet a “significant milestone”.
“As a leader in data centres, Keppel is pleased to deepen our collaboration with Woodside through the signing of an offtake term sheet, which has the ability to provide a reliable and stable source of lower carbon energy to power our assets in Singapore,” adds Wong Wai Meng, CEO, data centres, Keppel. “As the energy transition unfolds, Keppel will continue to innovate and seek out like-minded partners to enhance and future proof our data centres as we position ourselves to better serve our customers on their journeys to net zero.”
Shares in Keppel closed 4 cents higher or 0.62% up at $6.47 on Oct 18.
