Mitsubishi Power Asia Pacific and Jurong Engineering to Build Singapore's First Hydrogen-Ready Power Plant for Keppel

Published on: 01 September 2022
by KnowESG
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Keppel Infrastructure Holdings Limited (Keppel Infrastructure), through its wholly-owned subsidiary Keppel Energy, has reached a final investment decision (FID) to develop a 600MW state-of-the-art, advanced combined cycle gas turbine (CCGT) power plant and awarded an engineering, procurement, and construction (EPC) contract to a consortium of Mitsubishi Power Asia Pacific and Jurong Engineering. Keppel Sakra Cogen Plant will be Singapore's first hydrogen-ready power plant.

Keppel Sakra Cogen Plant will be owned by Keppel Sakra Cogen Pte. Ltd. (KSC), a wholly-owned indirect subsidiary of Keppel Infrastructure. Keppel Asia Infrastructure Fund LP (KAIF) and Keppel Energy will hold 70% and 30% equity interests in KSC, respectively. Keppel Sakra Cogen Plant will cost S$750 million.

The Keppel Sakra Cogen Plant uses natural gas as its principal fuel but can also run on hydrogen-rich fuels or wholly on hydrogen. As a CCGT power plant, it may create steam for industrial processes on Jurong Island. 

The Keppel Sakra Cogen Plant, expected to be completed in 1H 2026, would be Singapore's most advanced and energy-efficient power plant, resulting in superior performance, such as reduced emission intensity and higher operational flexibility.

This modern CCGT will be the most efficient in Singapore's operating fleet, saving up to 220,000 tonnes of CO2 per year compared to Singapore's average operating efficiency for equal power. Such CO2 equivalent savings would remove 47,000 cars from the road annually.

Mitsubishi Power Asia Pacific was also awarded a long-term service (LTS) contract for major turbine maintenance. Decarbonising power generation is at the core of the global climate change effort and one of the key features of Singapore's Green Plan, with the energy sector accounting for about 40% of Singapore's carbon emissions.

In addition to the EPC and LTS contracts, Keppel New Energy Pte Ltd, a fully owned subsidiary of Keppel Infrastructure, signed an MOU with Mitsubishi Heavy Industries, Ltd. to conduct a feasibility study on the building of a 100% ammonia-fueled power plant on a specified site in Singapore. 

This collaboration aims to address the energy trilemma and help Singapore and the region establish a more resilient and sustainable energy sector.

The FID for the Keppel Sakra Power Plant, as well as the MOU for a 100% ammonia-fueled combined cycle power plant, are in line with Keppel's Vision 2030, which prioritises sustainability as a key component of the company's strategy.

Ms 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 decarbonising 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.” 

Mr Osamu Ono, Managing Director and Chief Executive Officer of Mitsubishi Power Asia Pacific commented: 

“Mitsubishi Power looks forward to supplying the Keppel Sakra Cogen Plant with our hydrogen-ready JAC gas turbine. The plant will enjoy the unmatched combination of world-class efficiency and proven reliability backed by abundant operation hours of the fleet worldwide, the 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. 

"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. It is our honour to partner with Keppel Infrastructure, a visionary in the energy sector, to achieve our aligned net zero vision and build a sustainable energy future for Singapore.” 

Mr. Koichi Watanabe, Managing Director and Chief Executive Officer of Jurong Engineering Limited, commented: 

“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. Jurong Engineering will continue to diversify and strengthen our engineering capabilities by providing innovative solutions while contributing to a greener future.”

Source: Keppel

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