Keppel Ltd. Launches Singapore’s First Hydrogen-Compatible Power Plant With 600 MW Capacity

Keppel Ltd. has announced the commencement of commercial operations at the Keppel Sakra Cogen (KSC) Plant, marking the launch of Singapore’s first hydrogen-compatible combined cycle power plant. The 600 MW combined cycle gas turbine (CCGT) facility significantly expands Keppel’s power generation portfolio, increasing its total power capacity by approximately 45%.

The addition comes at a time when Singapore is experiencing growing electricity demand driven by digitalisation, artificial intelligence (AI), advanced manufacturing, and other energy-intensive industries, while also placing greater emphasis on energy security and system resilience.The KSC plant has been designed with future energy transition goals in mind.

At the start of operations, it is capable of co-combusting up to 30% hydrogen with natural gas, providing flexibility as Singapore and the region gradually adopt lower-carbon fuels. Although the plant currently operates on natural gas, it has been built with the capability to be modified in the future to run entirely on low-carbon hydrogen as hydrogen production and supply infrastructure become more widely available.

The facility incorporates advanced combined cycle gas turbine technology, making it one of the most efficient power plants in Singapore. Compared with many existing generation assets in the country, the plant is able to produce electricity more efficiently while providing reliable baseload power to support the national grid. It also retains the flexibility to switch to fuel oil if necessary, ensuring continued operational reliability under different energy supply conditions.With the addition of the KSC plant, Keppel’s total power generation capacity, together with the Keppel Merlimau Cogen Plant, now stands at approximately 1,900 MW.

This capacity is further supported by up to 200 MW of imported low-carbon electricity through the Laos-Thailand-Malaysia-Singapore Power Integration Project. These resources strengthen Keppel’s ability to meet Singapore’s growing energy requirements, particularly from sectors such as semiconductors, data centres, digital infrastructure, and AI-related developments.Commenting on the milestone, Cindy Lim, CEO of Keppel’s Infrastructure Division, said the launch of commercial operations at the KSC plant represents an important step forward for both Keppel and Singapore’s energy transition efforts.

She noted that the addition of highly efficient and hydrogen-compatible generation capacity enhances the country’s energy security and strengthens the resilience of its power system at a time of rising electricity demand. She also highlighted that KSC, as Singapore’s first hydrogen-compatible CCGT plant and one of its most efficient power generation facilities, improves Keppel’s ability to offer competitive and reliable long-term energy solutions to commercial and industrial customers.

Lim added that the plant has already secured contracts covering its generation capacity for both 2026 and 2027. As a result, KSC is expected to contribute positively to Keppel’s recurring income streams while positioning the company to benefit from future opportunities linked to the transition toward a lower-carbon energy system.Puah Kok Keong, Chief Executive of Singapore’s Energy Market Authority (EMA), emphasised the important role of combined cycle power plants in ensuring a stable electricity supply as Singapore progresses toward cleaner energy sources.

He stated that expanding power generation capacity remains necessary to meet the country’s growing energy needs and noted that the hydrogen-compatible design and higher efficiency of the KSC plant will support Singapore’s lower-carbon ambitions while maintaining the reliability and resilience of its electricity network.The ownership structure of the project also reflects Keppel’s integrated asset management approach.

The KSC plant is 70% owned by the Keppel Asia Infrastructure Fund, the company’s flagship infrastructure fund, while Keppel retains a 30% stake. The project demonstrates Keppel’s ability to originate, develop, operate, and scale strategic infrastructure assets through its asset-light business model.Beyond increasing power generation capacity, the facility is expected to deliver meaningful environmental benefits.

Thanks to its advanced design and operational efficiency, the KSC plant can reduce carbon emissions by up to 220,000 tonnes of CO₂ annually when compared with Singapore’s average operating efficiency for equivalent power generation. This reduction is roughly equivalent to removing approximately 47,000 cars from the roads each year, further supporting Singapore’s long-term sustainability and decarbonisation objectives.