Keppel To Develop Singapore’s First Hydrogen-Ready Power Plant, Awards Consortium for Construction

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Keppel Infrastructure Holdings Limited, through its wholly owned subsidiary Keppel Energy, has reached final investment decision (FID) to develop a 600MW state-of-the-art, advanced combined cycle gas turbine (CCGT) power plant in Singapore. This will be Singapore’s first hydrogen-ready CCGT power plant.

Keppel has also awarded an engineering, procurement and construction (EPC) contract to a consortium of Mitsubishi Power Asia Pacific and Jurong Engineering for the construction of the plant.

As per the official statement of Mitsubishi, the plant will be built in the Sakra sector of Jurong Island and the Keppel Sakra Cogen Plant will be the first hydrogen-ready power plant in Singapore. The Keppel Sakra Cogen Plant will be owned by Keppel Sakra Cogen Pte. Ltd. (KSC). Keppel Asia Infrastructure Fund LP (KAIF) and Keppel Energy will hold 70% and 30% equity interests in KSC respectively.

The Promise of the Plant

KSC and Keppel Energy will enter into a turnkey contract for the development of the Keppel Sakra Cogen Plant. The total investment for this plant will be around S$750 million.

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Running initially on natural gas as primary fuel, the plant is also designed to operate on fuels with 30% hydrogen content and has the capability of shifting to run entirely on hydrogen. Also, as a Combined Cycle Power Plant (CCGT), it could produce steam, for use in industrial processes for the energy and chemicals customers on Jurong Island.

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Mitsubishi held that the plant is  expected to be completed in the first half of 2026 and it will lower emission intensity and higher operation flexibility. The company further claimed that the plant 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 carbon dioxide.

A long-term service (LTS) contract for major maintenance of the turbine was also awarded to Mitsubishi Power Asia Pacific.

Osamu Ono, MD and CEO of Mitsubishi Power Asia Pacific, commented, “Mitsubishi Power looks forward to supplying the Keppel Sakra Cogen Plant with our hydrogen-ready JAC gas turbine.”

Other Projects in Pipeline 

In addition to the EPC and LTS contracts, Keppel New Energy has also signed an MoU 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.

Cindy Lim, CEO of Keppel Infrastructure, said, “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.”

Christina Tan, CEO of Keppel Capital, stated, “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.”