The Keppel Sakra Cogen Plant, Singapore's first hydrogen-compatible combined cycle power plant, has commenced commercial operations, boosting Keppel's power capacity by 45% and help meet Singapore's growing energy needs.
The plant is 70% owned by Keppel Asia Infrastructure Fund, Keppel’s flagship infrastructure fund and 30% owned by Keppel.
The plant now runs on natural gas but can also be modified to run entirely on low-carbon hydrogen as hydrogen supply chains mature over time.
The plant's capacity of 600 MW has been fully contracted this year and next, thereby supporting recurring income for Keppel.
Together with Keppel Merlimau Cogen Plant, Keppel will now have up to 1,900 MW of power capacity, supplemented by up to 200 MW of imported low-carbon power via the Laos-Thailand-Malaysia-Singapore Power Integration Project.
"The timely addition of advanced, high-efficiency and hydrogen-compatible generation capacity strengthens Singapore’s energy security and system resilience amid growing electricity demand driven by digitalisation, AI and industrial growth," says Cindy Lim, CEO of Keppel’s Infrastructure Division.
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"As Singapore’s first hydrogen-compatible CCGT and one of the country’s most efficient power plants, KSC also enhances Keppel’s ability to provide competitive and reliable long-term power solutions for commercial and industrial customers," she adds.
"Combined cycle power plants provide a reliable source of power for Singapore during our transition towards cleaner energy sources. It is important for Singapore to continue to expand our power generation capacity to ensure that we are able to meet the growing energy needs of the economy," says Puah Kok Keong, chief executive of market regulator the Energy Market Authority.
"Being hydrogen-compatible and more efficient, the Keppel Sakra Cogen Plant will support a lower-carbon energy future, while continuing to uphold the reliability and resilience of our power system," he adds.
Keppel shares closed at $10.72 on May 28, down 1.11% for the day but up 4.28% year to date.
