TOKYO, Sept 1, 2022 – (JCN Newswire) – Keppel Infrastructure Holdings Limited (Keppel Infrastructure), through its wholly owned subsidiary Keppel Energy, has already reached final financial commitment (FID) to build up a 600MW state-of-the-art, advanced combined cycle gas turbine (CCGT) power plant, and contains awarded an engineering, procurement and construction (EPC) contract to a consortium comprising Mitsubishi Power Asia Pacific and Jurong Engineering for the construction of the plant. To be built-in the Sakra sector of Jurong Island, the Keppel Sakra Cogen Plant would be the first hydrogen-ready power plant in Singapore.
Consistent with Keppel’s asset-light business design, the Keppel Sakra Cogen Plant will undoubtedly be owned by Keppel Sakra Cogen Pte. Ltd. (KSC)., presently a wholly-owned indirect subsidiary of Keppel Infrastructure. It really is intended that Keppel Asia Infrastructure Fund LP (KAIF) (Note1) and Keppel Energy will hold 70% and 30% equity interests in KSC respectively. Furthermore, KSC and Keppel Energy are scheduled to enter a turnkey contract for the development of the Keppel Sakra Cogen Plant. The full total investment for the Keppel Sakra Cogen Plant is likely to be around S$750 million.
Running initially on gas as primary fuel, the Keppel Sakra Cogen Plant can be designed to are powered by fuels with 30% hydrogen content and contains the ability of shifting to perform entirely on hydrogen. Furthermore, as a CCGT power plant, it’ll be in a position to produce steam, for used in industrial processes for the power and chemicals customers on Jurong Island. Likely to be completed in 1H 2026, the Keppel Sakra Cogen Plant would be the most cutting-edge and energy conserving power plant in Singapore, that may result in superior performance, such as for example lower emission intensity and higher operation flexibility. This advanced CCGT would be the most efficient on the list of operating fleet in Singapore and you will be able to conserve to 220,000 tons each year of CO2 in comparison with Singapore’s average operating efficiency for equivalent power generated. Such savings in CO2 equivalent means taking about 47,000 cars off the street each year.
A long-term service (LTS) contract for major maintenance of the turbine was also awarded to Mitsubishi Power Asia Pacific.
With the power sector accounting for nearly 40% of Singapore’s carbon emissions(Note2), decarbonising electricity generation reaches the core of the global climate change effort and something of the main element top features of Singapore’s Green Plan.
As well as the EPC and LTS contracts, Keppel New Energy Pte Ltd, a wholly owned subsidiary of Keppel Infrastructure, also signed a memorandum of understanding (MOU) with Mitsubishi Heavy Industries, Ltd. to handle a feasibility study on the development of a 100% ammonia-fuelled power plant on a selected site in Singapore. This collaboration seeks to handle the power trilemma and donate to creating a more resilient and sustainable energy sector in Singapore and the spot.
The FID on the Keppel Sakra Power Plant and also the MOU on 100% ammonia-fuelled combined cycle power plant are aligned with Keppel’s Vision 2030, which places sustainability at the core of the business’s strategy.
“Singapore’s electricity demand is projected to cultivate with increasing electrification and economic growth. Therefore, the power Market Authority welcomes investments by the private sector to create in best-in-class technologies in power generation. Being hydrogen-ready, this power plant by Keppel will contribute towards greater efficiency and lower carbon emissions. This can support Singapore’s transition to a far more sustainable energy future while ensuring the security and reliability of electricity supply to consumers,” said Mr. Ngiam Shih Chun, LEADER, EMA.
Ms Cindy Lim, CEO of Keppel Infrastructure, said, “The 600MW Keppel Sakra Cogen Plant will undoubtedly be Singapore’s first hydrogen-ready & most advanced, high-efficiency combined cycle gas turbine power plant, placing Keppel Infrastructure at the forefront of your time and effort to decarbonise Singapore’s power sector. When completed, this asset will grow Keppel’s power generation portfolio from the existing 1,300 MW to at least one 1,900 MW, allowing us to fully capture a more substantial market share because the demand for reliable energy continues to go up with Singapore’s economic development.”
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 design once we seize opportunities in the power transition. We think that hydrogen, as a low-carbon fuel, will play a crucial role in supporting Singapore’s commitment to decarbonise its power sector. Keppel Capital will continue steadily to leverage the synergies of the Keppel Group to recognize and spend money on such future-ready projects to generate value for the investors.”
Mr. Osamu Ono, Managing Director and CEO of Mitsubishi Power Asia Pacific, commented, “Mitsubishi Power looks forward to supplying the Keppel Sakra Cogen Plant with this hydrogen-ready JAC gas turbine. The plant will love the unmatched mix of world-class efficiency and proven reliability backed by abundant operation hours of the fleet worldwide, 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 of a century. Being an innovative low- and zero-carbon fuel, there’s immense prospect of hydrogen to be utilized in power generation systems make it possible for emissions reduction. It really is our honour to partner with Keppel Infrastructure, a visionary in the power sector, to attain our aligned net zero vision and create a sustainable energy future for Singapore.”
Mr. Koichi Watanabe, Managing Director and CEO of Jurong Engineering Limited, commented, “We have been glad to get a submit the establishment of the Keppel Sakra Cogen Plant that’s section of a concerted effort towards the decarbonisation of our future power generation. Jurong Engineering will continue steadily to diversify and strengthen our engineering capabilities by giving innovative solutions while adding to a greener future.”
The abovementioned developments aren’t likely to have any material effect on its earnings per share and net tangible asset per share of Keppel Corporation Limited, the parent company of Keppel Capital and Keppel Infrastructure, for the existing financial year.
(1) Managed by Keppel Capital Alternative Asset, an exclusive fund manager under Keppel Capital.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is among the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to provide innovative, integrated solutions that help realize a carbon neutral world, enhance the standard of living and ensure a safer world. To find out more, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.
Copyright 2022 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.