Sep 01, 2022 12:59 JST

Source: Mitsubishi Heavy Industries, Ltd.

Keppel to develop Singapore's first hydrogen-ready power plant, with construction undertaken by Mitsubishi Power and Jurong Engineering consortium

TOKYO, Sep 01, 2022 - (JCN Newswire) - Keppel Infrastructure Holdings Limited (Keppel Infrastructure), 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, and has 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 will be the first hydrogen-ready power plant in Singapore.

[Pictured from top left to bottom right] Loh Chin Hua (CEO/KCL), Minister Tan See Leng (Manpower/2 Min MTI), Ngiam Shih Chun (Chief Executive/EMA), Cindy Lim (CEO/Keppel Infrastructure), Osamu Ono (CEO/Mitsubishi Power Asia Pacific), Koichi Watanabe (CEO/JEL) at signing of EPC contract to develop Keppel Sakra Cogen Plant
 


In line with Keppel's asset-light business model, the Keppel Sakra Cogen Plant will be owned by Keppel Sakra Cogen Pte. Ltd. (KSC)., presently a wholly-owned indirect subsidiary of Keppel Infrastructure. It is intended that Keppel Asia Infrastructure Fund LP (KAIF) (Note1) and Keppel Energy will hold 70% and 30% equity interests in KSC respectively. In addition, KSC and Keppel Energy are scheduled to enter into a turnkey contract for the development of the Keppel Sakra Cogen Plant. The total investment for the Keppel Sakra Cogen Plant is expected to be around S$750 million.

Running initially on natural gas as primary fuel, the Keppel Sakra Cogen Plant is also designed to operate on fuels with 30% hydrogen content and has the capability of shifting to run entirely on hydrogen. In addition, as a CCGT power plant, it will be able to produce steam, for use in industrial processes for the energy and chemicals customers on Jurong Island. Expected to be completed in 1H 2026, the Keppel Sakra Cogen Plant will be the most cutting-edge and energy efficient power plant in Singapore, which will translate into superior performance, such as lower emission intensity and higher operation flexibility. This advanced CCGT 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 CO2 as compared to Singapore's average operating efficiency for equivalent power generated. Such savings in CO2 equivalent translates to taking about 47,000 cars off the road per year.
A long-term service (LTS) contract for major maintenance of the turbine was also awarded to Mitsubishi Power Asia Pacific.

With the energy sector accounting for almost 40% of Singapore's carbon emissions(Note2), decarbonising electricity generation is at the core of the global climate change effort and one of the key features of Singapore's Green Plan.

In addition to 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 carry out a feasibility study on the development of a 100% ammonia-fuelled power plant on a selected site in Singapore. This collaboration seeks to address the energy trilemma and contribute to building a more resilient and sustainable energy sector in Singapore and the region.

The FID on the Keppel Sakra Power Plant as well as 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 company's strategy.

"Singapore's electricity demand is projected to grow with increasing electrification and economic growth. As such, the Energy Market Authority welcomes investments by the private sector to bring 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 will support Singapore's transition to a more sustainable energy future while ensuring the security and reliability of electricity supply to consumers," said Mr. Ngiam Shih Chun, Chief Executive, EMA.

Ms Cindy Lim, CEO of Keppel Infrastructure, said, "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 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 model as we seize opportunities in the energy transition. We believe that hydrogen, as a low-carbon fuel, will play a critical role in supporting Singapore's commitment to decarbonise its power sector. Keppel Capital will continue to leverage the synergies of the Keppel Group to identify and invest in such future-ready projects to create value for our investors."

Mr. Osamu Ono, Managing Director and Chief Executive Officer of Mitsubishi Power Asia Pacific, commented, "Mitsubishi Power looks forward to supplying the Keppel Sakra Cogen Plant with our hydrogen-ready JAC gas turbine. The plant will enjoy the unmatched combination 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 a century. As an innovative low- and zero-carbon fuel, there is immense potential for hydrogen to be used in power generation systems to enable emissions reduction. It is our honour to partner with Keppel Infrastructure, a visionary in the energy sector, to achieve our aligned net zero vision and build a sustainable energy future for Singapore."

Mr. Koichi Watanabe, Managing Director and Chief Executive Officer of Jurong Engineering Limited, commented, "We are glad to have a hand in the establishment of the Keppel Sakra Cogen Plant that is part of a concerted effort towards the decarbonisation of our future power generation. Jurong Engineering will continue to diversify and strengthen our engineering capabilities by providing innovative solutions while contributing to a greener future."

The abovementioned developments are not expected to have any material impact 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 current financial year.

(1) Managed by Keppel Capital Alternative Asset, a private fund manager under Keppel Capital.
(2) https://www.nccs.gov.sg/singapores-climate-action/singapore-emissions-profile

About MHI Group

Mitsubishi Heavy Industries (MHI) Group is one of 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 deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.

Source: Mitsubishi Heavy Industries, Ltd.
Sectors: Energy, Alternatives

Copyright ©2022 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Related Press Release


Mitsubishi Power Receives 55MW Geothermal Power Plant Order from Pertamina
December 05 2022 14:26 JST
 
MHI Publishes Integrated Report "MHI Report 2022"
November 30 2022 17:07 JST
 
Mitsubishi Heavy Industries Engineering to be Integrated into MHI
November 30 2022 15:02 JST
 
Mitsubishi Power to Upgrade Two Gas Turbines at Tuas Power to Achieve 16.9 kilo-tonnes of Carbon Emissions Reduction Annually
November 30 2022 13:55 JST
 
ExxonMobil, Mitsubishi Heavy Industries Form Carbon Capture Technology Alliance
November 30 2022 10:56 JST
 
PLN Nusantara Power and Mitsubishi Power's Muara Karang Power Plant Recognized as "Project of the Year" at Asian Power Awards 2022
November 29 2022 18:00 JST
 
Mitsubishi Heavy Industries Power Environmental Solutions Develops New Ionic Wind Type Electrode ESP
November 25 2022 18:12 JST
 
MHI and EGAT ink MoU to Strengthen Cooperation on Clean Power Generation in Thailand
November 24 2022 13:33 JST
 
MHI Delivers First Pump for Hinkley Point C Nuclear Power Plant in UK
November 22 2022 13:43 JST
 
MHI: Joint Demonstration of Automated Picking Solution Launched in Collaboration with Kirin Group
November 21 2022 14:17 JST
 
More Press release >>

Latest Press Release


More Latest Release >>