Keppel Infrastructure is buying Singapore’s first ‘hydrogen-ready’ power plant, valued at S$750m (€557m) on completion in 2026.
Keppel said it was intended that Keppel Asia Infrastructure Fund (KAIF) would have a 70% stake, with Keppel Energy owning the remaining 30% of the 600MW Keppel Sakra Cogen Plant which will be built on Jurong Island, in Singapore’s west.
Keppel has awarded an engineering, procurement and construction contract to a consortium comprising Mitsubishi Power Asia-Pacific and Jurong Engineering for the construction of the plant.
Christina Tan, CEO of Keppel Capital, the parent company of the manager of KAIF, said: “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.
“We believe that hydrogen, as a low-carbon fuel, will play a critical role in supporting Singapore’s commitment to decarbonise its power sector.”
Cindy Lim, CEO of Keppel Infrastructure, said: “When completed, this asset will grow Keppel’s power generation portfolio from the current 1,300MW to 1,900MW, allowing us to capture a larger market share as demand for reliable energy continues to rise with Singapore’s economic development.”
Osamu Ono, managing director and chief executive officer of Mitsubishi Power Asia Pacific, said his company had extensive experience with power generation using hydrogen-rich fuel for over half a century.
“As an innovative low and zero-carbon fuel, there is immense potential for hydrogen to be used in power generation systems to enable emissions reduction,” Ono said.
Koichi Watanabe, managing director and CEO of Jurong Engineering, said the development of the new power plant was part of a concerted effort toward the decarbonisation of Singapore’s future power generation.
Another subsidiary, Keppel New Energy, has also signed a memorandum of understanding 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.
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