Keppel Infrastructure and ExxonMobil Asia Pacific have announced the signing of a Memorandum of Understanding (MoU) to develop access to low-carbon H2 and ammonia for scalable commercial and industrial applications in Singapore.
In addition to being a H2 carrier and storage medium, ammonia can be used directly as a carbon-free fuel or broken down into carbon-free H2 for use in power generation, as well as feedstock for refinery and petrochemical operations.
This MoU follows the Singapore government’s launch of its National H2 Strategy in October 2022, which expects H2 to meet up to half of Singapore’s power needs by 2050. As part of this H2 strategy, the Energy Market Authority and the Maritime and Port Authority of Singapore issued an expression of interest in December for proposals to build, own and operate low- or zero-carbon power generation and bunkering facilities on Jurong Island.
Currently, natural gas meets most of Singapore’s power generation demand. The Keppel- ExxonMobil collaboration has been formed to address the call to develop competitive solutions that can support Jurong Island’s sustainability goals and Singapore’s H2 strategy.
Keppel is also looking to use low-carbon H2 for Singapore’s first H2-ready 600 MW advanced combined cycle power plant. The Keppel Sakra Cogen Plant is expected to operate with at least 30% H2 and will have the capability of shifting to run entirely on H2. Currently under construction, the plant will be sited on Jurong Island and is expected to be completed in the first half of 2026.
At the same time, given the strong demand for low-carbon electricity in Singapore, Keppel is conducting a feasibility study of developing a power plant that could use ammonia directly as a fuel on Jurong Island. This would complement Keppel’s offering as Singapore’s leading independent power producer and retailer.
ExxonMobil is advancing its world-scale low-carbon H2 facility at its integrated complex in Baytown, Texas, from where ammonia will be produced. The low-carbon H2, ammonia and carbon capture facility are expected to produce 1 Bft3d of low-carbon H2, making it the largest low-carbon H2 project in the world at planned startup in 2027-2028.
More than 98% of the associated CO2 produced by the facility, or around 7 MM metric tpy, is expected to be captured and permanently stored.
Cindy Lim, CEO of Keppel Infrastructure, said, “Deep decarbonization of power generation and major industries is a key impetus for countries seeking pathways to net zero emissions. Globally, clean H2 is one of the most effective decarbonization strategies, especially for hard-to-abate sectors, like maritime and petrochemical. As a forerunner in the energy space, Keppel is pleased to work with ExxonMobil to accelerate the end-to-end development and deployment of ammonia to support industries and Singapore’s sustainability goals.”
ExxonMobil’s Asia Pacific President for Low Carbon Solutions, Irtiza Sayyed, said, “ExxonMobil is pleased to work with Keppel to evaluate low-carbon solutions as part of our goal to reduce our emissions and help others reduce theirs. This is an example of how we can provide critical, scalable solutions to reduce CO2 emissions in support of our company’s and Singapore’s net-zero ambitions.”