en.Wedoany.com Reported - Keppel Ltd. announced the commercial operation of its Keppel Sakra Combined Cycle (KSC) power plant, marking the official launch of Singapore's first hydrogen-ready combined cycle gas turbine (CCGT) facility. The 600 MW CCGT plant increases Keppel's total generation capacity by approximately 45%.
This expansion comes as Singapore's electricity demand grows due to high-energy-consumption industries such as digitalization, artificial intelligence (AI), and advanced manufacturing, alongside an increased focus on energy security and system resilience. The KSC plant is designed with future energy transition goals in mind. In its initial phase, the plant can co-fire up to 30% hydrogen with natural gas, providing flexibility for the gradual adoption of low-carbon fuels in Singapore and the region. Currently operating on natural gas, the plant is pre-configured for future conversion to run entirely on low-carbon hydrogen. Utilizing advanced CCGT technology, it is one of Singapore's most efficient power plants, generating electricity with higher efficiency and providing reliable baseload power to the national grid. Additionally, the plant retains the flexibility to switch to fuel oil when necessary, ensuring operational reliability under various energy supply conditions.
With the addition of the KSC plant, Keppel's total generation capacity (together with the Keppel Merlimau Combined Cycle plant) now stands at approximately 1,900 MW, supported by up to 200 MW of imported low-carbon electricity from the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project. These resources enhance Keppel's ability to meet Singapore's growing energy needs, particularly from sectors such as semiconductors, data centers, digital infrastructure, and AI-related developments.
Cindy Lim, CEO of Keppel's Infrastructure Division, stated that the commencement of commercial operations at the KSC plant marks a significant step forward for both Keppel and Singapore's energy transition. Amid rising electricity demand, the efficient and hydrogen-ready generation capacity strengthens the nation's energy security and enhances the resilience of the power system. As Singapore's first hydrogen-ready CCGT plant and one of its most efficient generation facilities, KSC improves Keppel's ability to offer competitive and reliable long-term energy solutions to commercial and industrial customers. Lim added that the plant has secured contracts covering its generation capacity for 2026 and 2027, which are expected to contribute positively to Keppel's recurring income streams while enabling the company to benefit from future opportunities related to the transition to a low-carbon energy system. Puah Kok Keong, CEO of Singapore's Energy Market Authority (EMA), emphasized the important role of combined cycle plants in ensuring a stable electricity supply, noting that the KSC plant's hydrogen-ready design and higher efficiency will support Singapore's low-carbon goals while maintaining the reliability and resilience of its power network.
The KSC plant is 70% owned by the Keppel Asia Infrastructure Fund, with Keppel retaining a 30% stake, demonstrating Keppel's ability to originate, develop, operate, and scale strategic infrastructure assets through a light-asset business model. With its advanced design and operational efficiency, compared to the average operating efficiency of plants with equivalent generation capacity in Singapore, the KSC plant can reduce carbon dioxide emissions by up to 220,000 tonnes annually—equivalent to taking approximately 47,000 cars off the road each year—supporting Singapore's long-term sustainable development and decarbonization goals.
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