Keppel inks conditional deal for supply of liquid hydrogen to power its data centres
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The liquid hydrogen supply is expected to reduce emissions generated by Keppel Data Centres’ facilities.
PHOTO: ST FILE
Ranamita Chakraborty
SINGAPORE – Keppel has signed a conditional offtake term sheet with Woodside Energy, Australia’s largest oil and gas developer, for the supply and purchase of liquid hydrogen to power its data centres in Singapore.
Keppel intends for the potential liquid hydrogen supply to form part of a larger, long-term utility-scale lower-carbon power portfolio that it is building to power its assets.
The term sheet follows the signing of a non-binding heads of agreement between the two parties in April 2023 to evaluate the potential supply of liquid hydrogen to Singapore.
Their deal tables commercial principles that may pave the way for an eventual binding offtake agreement for the supply of liquid hydrogen from as early as 2030, Keppel announced on Oct 21.
The sources of liquid hydrogen would include Woodside’s proposed production facilities such as H2Perth, its facility in Perth, Western Australia.
Mr Wong Wai Meng, chief executive of Keppel Data Centres, said the deal with Woodside has the “ability to provide a reliable and stable source of lower-carbon energy to power our assets in Singapore”.
However, it remains conditional upon several factors, including the negotiation and execution of a fully termed sales and purchase agreement, as well as obtaining all necessary approvals.
The liquid hydrogen supply is expected to reduce emissions generated by Keppel Data Centres’ facilities.
The supply will be used to cool data centres.
Keppel shares closed two cents, or 0.3 per cent, lower at $6.45 on Oct 21. THE BUSINESS TIMES
