Keppel plans hydrogen-ready power plant in Singapore

Keppel Infrastructure Holdings Limited, through its wholly-owned subsidiary Keppel Energy, has reached the final investment decision (FID) to develop a 600 MW state-of-the-art, advanced combined cycle gas turbine (CCGT) power plant.

It has awarded an engineering, procurement and construction (EPC) contract to a consortium comprising Mitsubishi Power Asia Pacific and Jurong Engineering for the plant’s construction.

In line with Keppel’s asset-light business model, the Keppel Sakra Cogen Plant will be owned by Keppel Sakra Cogen Pte. Ltd. (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 developing the Keppel Sakra Cogen Plant. The total investment for the Keppel Sakra Cogen Plant is expected to be around S$750 million.

Running initially on natural gas as primary fuel, the Keppel Sakra Cogen Plant is also designed to operate on fuels with 30% hydrogen content and can shift to run entirely on hydrogen. In addition, as a CCGT power plant, it will be able to produce steam for use in industrial processes for the energy and chemicals customers on Jurong Island.

Expected to be completed in 1H 2026, the Keppel Sakra Cogen Plant will be the most cutting-edge and energy-efficient power plant in Singapore, which will translate into superior performance, such as lower emission intensity and higher operational flexibility.

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 as compared to Singapore’s average operating efficiency for equivalent power generated. Such savings in CO2 equivalent translates to taking about 47,000 cars off the road per year.

In addition to the EPC and LTS contracts, Keppel New Energy Pte Ltd, a wholly-owned subsidiary of Keppel Infrastructure, also signed a memorandum of understanding (MOU) with Mitsubishi Heavy Industries, Ltd. 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.

The FID on the Keppel Sakra Power Plant and the MOU on the 100% ammonia-fuelled combined cycle power plant is aligned with Keppel’s Vision 2030, which places sustainability at the core of the company’s strategy.

Mr Ngiam Shih Chun, Chief Executive, EMA, said, “This will support Singapore’s transition to a more sustainable energy future while ensuring the security and reliability of electricity supply to consumers.”

Ms Cindy Lim, CEO of Keppel Infrastructure, explained, “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.”

Ms Christina Tan, CEO of Keppel Capital, the parent company of the manager of KAIF, commented, “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.”

Mr Osamu Ono, MD and CEO of Mitsubishi Power Asia Pacific, added, “The plant will enjoy the unmatched combination of world-class efficiency and proven reliability backed by abundant operation hours of the fleet worldwide, T-Point 2 grid-connected combined cycle power plant verification facility located at Takasago Hydrogen Park in Japan and our extensive experience with power generation using hydrogen-rich fuel for over half a century.”

Mr Koichi Watanabe, the Managing Director and CEO of Jurong Engineering Limited, said, “We are glad to have a hand in the establishment of the Keppel Sakra Cogen Plant that is part of a concerted effort towards the decarbonisation of our future power generation.”