Pertamina NRE, Keppel Infrastructure, and Chevron have signed an agreement to explore green hydrogen and green ammonia development projects in Indonesia, primarily in Sumatra.
Pertamina NRE, Keppel Infrastructure, and Chevron have signed an agreement to explore green hydrogen and green ammonia development projects in Indonesia, specifically Sumatra. (ANTARA/Pertamina)
“The development of green hydrogen and green ammonia has an important role in Indonesia’s Net Zero Emissions road map,” Pertamina NRE CEO Dannif Danusaputro said on Saturday.
Given the existing potential, Indonesia is expected to play a key role in green hydrogen production in Asia, he added.
We are excited about this strategic collaboration because we believe Keppel and Chevron are leading companies that share the same vision of energy transition as we do,” he added.
The collaboration was also welcomed by Keppel Infrastructure CEO Cindy Lim, who expressed her satisfaction over the agreement.
Indonesia is a country with large resources of high renewable and low carbon energy potential, she noted.
Therefore, she said she is pleased to be working with industry leaders, Pertamina and Chevron, to explore the prime use of geothermal energy and other new renewable energy for developing green hydrogen and green ammonia projects.
The cooperation is also meant to support Indonesia’s energy transition efforts as well as investment in new renewable energy supply chains in exploration areas, she added.
“This partnership will expand Keppel Infrastructure’s geographic footprint of creating and capturing added value from its global commitment to net zero and its energy transition,” she said.
Meanwhile, vice president of hydrogen at Chevron New Energies, Austin Knight, expressed his hope to use the shared expertise to study and evaluate low-carbon business opportunities in the region.
“Then, we must work together to find new and innovative ways to continue to produce and deliver cleaner energy for a growing world,” he said.
Pertamina, Keppel Infrastructure, and Chevron signed the Joint Study Agreement (JSA) at the Business 20 (B20) Investment Forum, which was held ahead of the B20 Summit in Bali.
B20 is the official dialogue forum of the G20 that represents the global business community.
The JSA has been prepared to explore the feasibility of developing a green hydrogen facility, with a minimum production capacity of 40 thousand tons per year, supported by at least 250-400 MW of geothermal energy in the initial stage.
The hydrogen production facility will have the potential to be scaled up to 80 thousand to 160 thousand tons per year, depending on the availability of geothermal energy and market demand.
Hydrogen and ammonia have been identified as low-carbon fuels that are an important part of the energy transition plan.
Ammonia can also be used to transport hydrogen and has the potential to replace bunker fuel as a low-carbon solution in the global maritime industry.
With the agreement, Indonesia, which has around 40 percent of the world’s potential geothermal resources, has the opportunity to utilize geothermal energy as a reliable and stable source of energy to produce green ammonia or green hydrogen.
In a Memorandum of Understanding (MoU) signed yesterday, Keppel New Energy Pte Ltd, a wholly owned subsidiary of Keppel Infrastructure; Mitsubishi Heavy Industries, Ltd. (MHI); and DNV, a global independent energy expert and assurance provider, announced a strategic collaboration to explore the feasibility and implementation of an ammonia-fired gas turbine on Jurong Island, Singapore.
Signing Ceremony
The MoU will see the three companies work together to perform a high-level Quantitative Risk Assessment to explore the use of 100% ammonia as a fuel for a gas turbine or combined cycle gas turbine (CCGT) – towards the potential development of an Ammonia Power Plant.
Under the MoU, Keppel will study the feasibility of an ammonia fuelled power plant, while MHI, with support from its power solutions brand, Mitsubishi Power, will develop an ammonia-fired gas turbine that produces carbon-neutral power to pursue the expansion of the ammonia fuel supply chain in Singapore. Alongside this, DNV will lend its assurance and risk management expertise to prepare and present a QRA analysis on the project.
Takao Tsukui, General Manager, International Sales and Marketing Department, GTCC Business Division, MHI, said: “Ammonia is a potential key component to building a hydrogen society. Mitsubishi Power has pioneered world-class gas turbine and hydrogen fuel combustion technologies for more than 50 years, and this MoU demonstrates our continued dedication to pursue cutting-edge solutions that can support the growing demand for electricity while transitioning towards a more sustainable energy future in Asia Pacific.”
“DNV is proud to use our well established advisory and hydrogen technical capabilities to provide quantitative risk assessment for this impactful project. We believe that ammonia-fired power generation can be an important step on the path to a more sustainable energy future. This MoU offers us an exciting opportunity to share our extensive industry experience to support this important contribution to Singapore’s net zero and energy transition goals,” said Brice Le Gallo, Vice President and Regional Director-Asia Pacific, Energy Systems, DNV.
Ammonia has a higher volumetric density than hydrogen, making it easier for storage and distribution. It does not produce CO2 when fired and is an efficient hydrogen carrier. Its use as a fuel is a promising long-term energy solution for the transition to a zero-carbon energy value chain. The MoU aims to draw up robust assessment guidelines to ensure the safety and sustainability of ammonia as a clean fuel, while maintaining high efficiency and low NOx emissions for use in a gas turbine system for power generation.
This agreement follows an announcement in August 2022 that Keppel Energy will develop Singapore’s first hydrogen-ready power plant in the Sakra sector of Jurong Island, constructed by a consortium comprising Mitsubishi Power Asia Pacific and Jurong Engineering. A long-term service (LTS) contract for major maintenance of the turbine was also awarded to Mitsubishi Power. Keppel New Energy additionally signed a MoU with MHI to carry out a feasibility study on the development of a 100% ammonia-fueled power plant on a selected site in Singapore.
Together, by embarking on this MoU, Keppel, MHI and DNV are demonstrating their commitment to accelerate the decarbonization of energy to create a pathway to a net zero future.
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.
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.
