With the new year finally here, several nations are contemplating the future of their energy sector amid calls to diversify and decarbonize the global energy sector to reach emission goals. Now, one of Asia’s economic powerhouses, Singapore, has revealed its plans to construct a massive 600 MW hydrogen-ready power plant with a targeted 2026 start-up date. The renewable energy sector has been growing at an astonishing pace over the past decade or so, and with Indonesia planning the turn-key hydrogen project, the future of the sector is looking bright.
Keppel Energy has reached a Final Investment Decision on a new hydrogen project in Singapore
Keppel Energy recently revealed that it has reached an FID on the 600 MW advanced combined cycle gas turbine (CCGT) power plant in Singapore, marking a milestone achievement for the nation as it aims to reach emission targets in the near future. The firm has awarded the engineering, procurement, and construction (EPC) contract to a consortium of companies, including Mitsubishi Power Asia Pacific and Jurong Engineering.
The new project will be constructed in the Sakra sector of Jurong Island and will feature state-of-the-art technology in the energy industry, making the Keppel Sakra Cogen Plant one of the most advanced anywhere in the world. The aim is for Keppel Asia Infrastructure Fund LP to hold a 70% stake in the project, with Keppel Energy holding the remaining 30%.
The new Keppel Sakra Cogen Plant represents nearly a billion-dollar investment in the nation’s renewable energy sector
In addition to the development contract being awarded to the consortium of companies, Keppel Energy and the KSC (Keppel Sakra Cogen) will enter into a turn-key contract for the development of the Keppel Sakra Cogen Plant, which is estimated to cost approximately S$750 million. Singapore’s renewable energy dream is steaming forward at full pace.
The Keppel Sakra Cogen Plant will initially run on natural gas
The plant will run on natural gas at first, with hydrogen comprising 30% of the resources used on-site, although the plant could be converted to run on hydrogen only.
Furthermore, as an advanced combined cycle gas turbine power plant, the facility will produce steam that can then be used in industrial processes for the energy and chemicals customers on Jurong Island.
The Keppel Sakra Cogen Plant is set for an H1 2026 completion date and will feature some of the most cutting-edge and energy-efficient technology in the industry, capable of saving up to 220,000 tons per year of CO2. With several nations outlining plans for astonishing new hydrogen ventures this year, the sector is growing at an astonishing pace.
“The 600MW Keppel Sakra Cogen Plant will be Singapore’s first hydrogen-ready and most advanced, high-efficiency combined cycle gas turbine power plant, placing Keppel Infrastructure at the forefront of the effort to decarbonise Singapore’s power sector. 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 Cindy Lim, CEO of Keppel Infrastructure
Singapore’s government has plans to decarbonize its energy sector in 2026
With nearly 40% of Singapore’s emissions emanating from the energy sector, the government has noted the urgency needed in decarbonizing the energy sector in order to meet its ambitious emission targets. As Europe’s proclivity for the renewable energy sector has become all too evident in recent months and years, Singapore and the Asian continent are aiming to increase investments in clean energy generation capacity as the world hopefully enters the final phase of the transition to the renewable energy sector, leaving behind the reliance on fossil fuels, if all goes well.
