It may pave the way for an eventual binding offtake agreement for the supply of liquid hydrogen from as early as 2030
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 aimed at powering Keppel’s data centres in Singapore.
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 Monday (Oct 21).
The sources of liquid hydrogen would include Woodside’s proposed production facilities such as H2Perth, its facility in Perth, Western Australia.
Wong Wai Meng, CEO of Keppel Data Centres, said the term sheet 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.
Keppel intends for the potential liquid hydrogen supply to form part of a larger, long-term utility-scale lower carbon power portfolio that the asset manager is developing to support its assets.
The liquid hydrogen supply chain is expected to reduce emissions generated by Keppel Data Centres’ facilities. The supply will be used to cool data centres.
Keppel shares closed 0.6 per cent or S$0.04 higher at S$6.47 on Friday.
