Keppel Infrastructure is buying Singapore鈥檚 first 鈥榟ydrogen-ready鈥� power plant, valued at S$750m (鈧�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鈥檚 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: 鈥淭he joint investment by Keppel Infrastructure and KAIF in the Keppel Sakra Cogen Plant reflects the Keppel Group鈥檚 asset-light business model as we seize opportunities in the energy transition.
鈥淲e believe that hydrogen, as a low-carbon fuel, will play a critical role in supporting Singapore鈥檚 commitment to decarbonise its power sector.鈥�
Cindy Lim, CEO of Keppel Infrastructure, said: 鈥淲hen completed, this asset will grow Keppel鈥檚 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鈥檚 economic development.鈥�
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.
鈥淎s an innovative low and zero-carbon fuel, there is immense potential for hydrogen to be used in power generation systems to enable emissions reduction,鈥� 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鈥檚 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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