Keppel Partners with Woodside Energy for Liquid Hydrogen Supply to Power Data Centres in Singapore
Singapore-based Keppel has sealed a game-changing deal with Woodside Energy, Australia’s leading oil and gas developer, to provide liquid hydrogen for Keppel’s data centres in Singapore. This groundbreaking agreement marks a significant step towards a cleaner, more sustainable future for Keppel’s operations in the region.
### The Partnership
– Keppel and Woodside Energy have signed a conditional offtake term sheet for the supply and purchase of liquid hydrogen.
– This supply is set to be a crucial component of Keppel’s long-term utility-scale lower-carbon power portfolio, which will power its assets in Singapore.
– The term sheet builds upon a non-binding heads of agreement signed in April 2023 to explore the potential supply of liquid hydrogen to Singapore.
### Future Prospects
– The deal outlines commercial principles that could lead to a binding offtake agreement for the supply of liquid hydrogen as early as 2030.
– Woodside’s proposed production facilities, including H2Perth in Western Australia, are expected to be key sources of liquid hydrogen for Keppel’s operations.
– Mr. Wong Wai Meng, CEO of Keppel Data Centres, believes that this partnership with Woodside will provide a reliable and sustainable source of lower carbon energy for powering Keppel’s assets in Singapore.
### Conditions and Benefits
– The agreement is subject to various conditions, including the negotiation and execution of a fully termed sales and purchase agreement, as well as regulatory approvals.
– The liquid hydrogen supply is anticipated to significantly reduce emissions from Keppel’s data centre facilities, where it will be used for cooling purposes.
### Market Response
– Following the announcement, Keppel shares saw a positive uptick, trading up by 0.5% at $6.50 as of October 21, 10:58 am.
This strategic partnership between Keppel and Woodside Energy not only represents a major milestone in the shift towards sustainable energy solutions but also sets a precedent for other companies looking to embrace cleaner technologies. By leveraging the power of liquid hydrogen, Keppel is not only reducing its environmental footprint but also paving the way for a greener and more efficient future for the data centre industry.
In conclusion, this collaboration between Keppel and Woodside Energy is not just a business deal – it’s a testament to the power of innovation and collaboration in driving positive change. By prioritizing sustainability and embracing cutting-edge technologies like liquid hydrogen, Keppel is not only ensuring the longevity of its operations but also setting a new standard for environmental responsibility in the corporate world. This partnership serves as a beacon of hope for a future where businesses prioritize the planet alongside profits, creating a more sustainable and prosperous world for all.