Singapore’s first hydrogen-compatible power plant, the 600 MW Keppel Sakra Cogen Plant, commenced commercial operations at end-May 2026, adding efficient generation capacity to strengthen the country’s energy security and grid resilience. 

The 600 MW Keppel Sakra Cogen (KSC) Plant is the latest demonstration of Keppel’s deep capabilities in developing and operating complex energy infrastructure. Its successful delivery from development through commissioning and commercial operations adds efficient and future-ready generation capacity to support Singapore’s electricity grid.

For Bryan Toh, Project Director of KSC, the milestone was the culmination of a complex development and commissioning journey.

“Bringing a 600 MW power plant into commercial operation requires many complex pieces to come together,” said Toh. “The team had to work through each critical milestone, from first fire and synchronisation with the grid, to securing the generation registration required to operate in Singapore’s power system."

KSC is Singapore’s first hydrogen-compatible power plant and among its most energy-efficient. Compared with Singapore’s average operating efficiency for equivalent power generated, the plant can reduce carbon emissions by up to 220,000 tonnes of CO₂ annually – equivalent to taking about 47,000 cars off the road each year.

Designed for the future

Power plants are built to operate for decades, making it important to anticipate how the energy landscape could evolve over their useful lives. Keppel took a pragmatic approach to future-proofing KSC, designing it to meet Singapore’s energy needs today while retaining the flexibility to adapt to hydrogen in the future.

KSC can co-combust up to 30% hydrogen with natural gas at the onset, with the technology capable of being modified to operate entirely on low-carbon hydrogen. This flexibility enables KSC to adapt as hydrogen supply chains and the energy landscape evolve, helping to keep the plant relevant and competitive over its long operating life. Its ability to operate on fuel oil as an alternative fuel further strengthens fuel flexibility and the resilience of power generation.

Sustainability considerations are also embedded in KSC’s broader design. The plant is designed to meet the BCA Green Mark Gold^PLUS standard, while its administration building has been certified as a BCA Green Mark Zero Energy building. Planned rooftop solar panels will help meet the administration building’s energy needs, with surplus generation able to offset part of the electricity consumed by the plant’s auxiliary equipment.

Creating value through operations

A power asset’s long-term value depends not only on how it is engineered, but also on how effectively it is operated and optimised over its lifecycle. KSC draws on Keppel’s deep experience in developing and operating critical infrastructure, including large-scale power generation assets.

Keppel has integrated the operations of KSC and the Keppel Merlimau Cogen (KMC) Plant, located approximately three kilometres apart, to capture synergies across the two assets. While each retains the dedicated personnel required for safe and reliable round-the-clock operations, functions such as procurement, technical support and administration are shared to improve efficiency.

With KSC and KMC providing up to 1,900 MW of generation capacity, complemented by up to 200 MW of imported low-carbon power through the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project, Keppel has built significant capabilities across power generation and electricity supply. This scale, combined with its experience as an integrated power producer and retailer, enables Keppel to optimise operations across its power business. These capabilities can in turn enhance the performance and long-term value of assets such as KSC for Keppel and its private infrastructure fund.

Keppel harnesses operating synergies across KSC and KMC to enhance efficiency and create greater value from its power generation assets. 

Bringing capital and operating expertise together

KSC brings together Keppel’s capabilities as an asset manager and operator. The plant is 70% owned by Keppel Asia Infrastructure Fund (KAIF), Keppel’s flagship infrastructure fund, with Keppel holding the remaining 30% as a co-investor. Together with Keppel’s sponsor stake in KAIF, this aligns its interests with Limited Partners (LPs).

For LPs, the model provides access to essential infrastructure backed by Keppel’s capabilities across the asset lifecycle – from origination and development to operations, optimisation and ultimately, value crystallisation. Combined with its fund management capabilities, this enables Keppel to mobilise third-party capital and scale investment opportunities where its operating expertise can create value.

KSC is fully contracted for the remainder of 2026 and 2027, after accounting for the required market reserves, and is expected to contribute positively to Keppel’s recurring income. Investors in KSC also benefit from a long-term 30-year tolling agreement with Keppel Electric, which helps to de-risk the plant’s revenue profile. By bringing together capital with deep domain and operating expertise, KSC demonstrates how Keppel creates and enhances value across the infrastructure lifecycle for Keppel and its fund investors.