Keppel, a leading infrastructure company, has progressed its plans for hydrogen-powered data centres in Singapore. The company signed an offtake term sheet with Australia’s Woodside for the supply of hydrogen. This marks a significant step forward in their collaboration.
Keppel and Woodside Sign Offtake Term Sheet
The offtake term sheet, announced on October 21st, follows a Heads of Agreement (HoA). The HoA was signed between Keppel and Woodside in April 2023. The initial agreement outlined the potential purchase of approximately 1,000 tonnes per day of liquid hydrogen. This hydrogen would be purchased by Keppel Data Centres, with supply starting as early as 2030. The next step for the companies is to sign a binding offtake agreement for the hydrogen supply.
Woodside to Supply Hydrogen from Proposed Production Facilities
Under the deal, Woodside would supply hydrogen to Keppel from its proposed hydrogen production facilities. These facilities include the H2Perth project. Woodside CEO Meg O’Neill described the progress as a “significant milestone.” She expressed the company’s pleasure in working with Keppel to potentially supply lower carbon energy. This energy would be in the form of hydrogen to their Singapore data centres.
Keppel’s Plans for Net Zero Data Centre Campus
Keppel has confirmed plans for its Datapark+ project, a 1GW nearshore Net Zero data centre campus concept. This campus would be located in Singapore. The campus can be developed in phases based on demand and the availability of clean and low-carbon energy. Currently, there are only a few operational hydrogen data centres globally. These include facilities from ECL and Microsoft.
Keppel Seeks Partners for Future-Proofing Data Centres
Wong Wai Meng, CEO of Data Centres at Keppel, made a statement. He said that as the energy transition unfolds, Keppel will continue to innovate. They will also seek out like-minded partners to enhance and future-proof their data centres. This strategy positions the company to better serve customers on their journeys to Net Zero.
- Keppel recognizes the importance of adapting to the ongoing energy transition
- The company actively seeks partnerships to innovate and future-proof its data centres
- By collaborating with like-minded partners, Keppel aims to better serve customers in achieving their Net Zero goals
- Keppel’s proactive approach positions the company as a leader in sustainable data centre solutions
Term Sheet Remains Conditional
The Term Sheet between Keppel and Woodside remains conditional upon certain factors. These include the negotiation and execution of a fully termed sales and purchase agreement. Obtaining all necessary approvals is also a condition.
The Importance of Hydrogen in Data Centre Decarbonization
Data centres account for a significant portion of global energy consumption. The adoption of hydrogen as a clean energy source can play a crucial role in reducing their carbon footprint. Collaborations between infrastructure companies and energy providers are essential. The collaboration between Keppel and Woodside is an example of this. These collaborations drive the transition to sustainable data centre operations.
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