YTL PowerSeraya (YTLPS) has announced a series of partnerships focused on the energy transition at the start of Singapore International Energy Week (SIEW) 2025 on Oct 27, including a $500 million transition finance deal from three banks.
DBS Group Holdings, Maybank and Oversea-Chinese Banking Corporation (OCBC) have extended $500 million in transition financing to YTLPS for the development of its 600-megawatt (MW) hydrogen-ready combined cycle gas turbine (CCGT) plant at Pulau Seraya Power Station, targeted to be built by end-2027.
This transaction is Singapore’s first transition finance deal that is aligned with the Singapore-Asia Taxonomy for Sustainable Finance (SAT) and the Asia Pacific Loan Market Association’s Green Loan Principles.
The financing is part of a broader $1.2 billion term loan facility provided to YTLPS by the same three banks. The three banks also serve as joint sustainability structuring advisers.
The Monetary Authority of Singapore (MAS) launched the SAT in December 2023, setting out detailed thresholds and criteria for defining green and transition activities that contribute to climate change mitigation across eight focus sectors.
This allows banks to finance projects that would normally be considered emissions intensive, such as a new gas-fired power plant, but only if they meet certain green and transition criteria.
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In March, MAS published an information note retroactively mapping eight deals by Singapore’s three banks to the SAT, hoping to encourage deals that are aligned with the transition criteria.
The financing for YTLPS’s new plant has been classified as transition finance as it is aligned with SAT. Unlike sustainability-linked loans, there are no sustainability performance targets for this $500 million transition finance loan.
Retrofit project with Siemens Energy
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YTLPS, through its subsidiary, Taser Power, is working with Siemens Energy to deploy its Advanced Turbine Efficiency Package (ATEP), breathing new life into one of Singapore’s key power assets, the 396MW Taser Power Plant.
According to YTLPS, the retrofit introduces high-efficiency hot gas path components with aerodynamic profiling, optimised cooling and improved sealing. The upgrade also enhances operational flexibility and reliability by extending maintenance intervals and reducing downtime.
Upon completion in December, the plant will operate with improved efficiency and is expected to reduce up to 11,000 tonnes of carbon dioxide equivalent emissions annually.
Carbon capture feasibility studies
To further reduce the carbon intensity of power generation, YTLPS has embarked on two carbon capture feasibility studies, supported by the Energy Market Authority’s power sector carbon capture and storage (CCS) grant call, set to be in place for its 600MW hydrogen-ready CCGT.
First, YTLPS and Air Liquide are conducting a feasibility study to evaluate the potential of incorporating Air Liquide's proprietary Lurgi Autothermal Reforming (ATR) and Cryocap technologies into the upcoming CCGT.
This collaboration aims to find a viable path for reducing carbon emissions and supporting Singapore's energy transition.
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Air Liquide claims Cryocap is the only proven capture technology that can reduce emissions from hydrogen production while simultaneously increasing hydrogen output by 10%-20%, through a combination of membrane and cryogenic processes.
These solutions could abate up to 15 million tonnes of carbon emissions over the plant’s lifetime.
Second, YTLPS and GE Vernova are assessing the feasibility of capturing carbon emissions after combustion.
GE Vernova is also one of the key appointed consortium partners that is building YTLPS’s CCGT, which will mark GE Vernova’s first hydrogen-ready CCGT in Singapore.
This feasibility study is focused on retrofitting YTLPS’s CCGT with technology capable of capturing at least 90% of the plant’s emissions.
Based on the findings from the feasibility studies, YTLPS will work with EMA to deepen industry knowledge of the power sector CCS pathways, as well as identify infrastructure and site-specific requirements.
This dual approach positions YTLPS as one of only two companies in Singapore exploring both pre- and post-combustion carbon capture scopes, alongside Keppel’s infrastructure division.
Lim Han Kwang, CEO of Geneco and deputy CEO of YTLPS, says: “By investing in hydrogen-ready power generation, pioneering carbon capture technologies and securing financing aligned with global sustainability standards, we’re laying the foundation for a more resilient and decarbonised energy system.”
“Singapore’s energy transition goal is a tremendous opportunity to reimagine how we power our future, says John Ng, CEO of YTLPS. “YTL PowerSeraya is proud to play a leading role in building the systems today that will power a sustainable tomorrow for Singapore.”
