Keppel Data Centers has signed a conditional offtake term sheet to supply and purchase liquid hydrogen from Woodside.
The supply agreement aims to power Keppel’s data center portfolio in Singapore.
Keppel plans to integrate the potential liquid hydrogen supply into a broader, long-term portfolio of low-carbon power solutions that it is developing to meet the energy needs of its assets.
This initiative is part of Keppel's strategy to expand its utility-scale renewable energy offerings.
The agreement follows the signing of a non-binding heads of agreement between the two parties in April 2023. The term sheet tables commercial principles that may pave the way for an eventual binding offtake agreement for liquid hydrogen supply from as early as 2030.
Wong Wai Meng, CEO of data centers at Keppel said: “As a leader in data centers, Keppel is pleased to deepen our collaboration with Woodside through the signing of an offtake Term Sheet, which has the ability to provide a reliable and stable source of lower carbon energy to power our assets in Singapore.”
The term sheet remains conditional upon the negotiation and execution of a fully termed sales and purchase agreement and obtaining all necessary approvals.
Woodside will likely supply the liquid hydrogen from its proposed production facilities, including H2Perth.
H2Perth is a commercial-scale hydrogen and ammonia production facility in Perth, Western Australia. A final investment decision on the project is currently pending. If it achieves FID, the project is expected to be constructed in phases, with phase one supplying up to 2,700 tons per day of ammonia produced through gas reforming (with carbon capture and storage) and electrolysis.
H2Perth proposes to use a target of 80 percent renewable electricity from start-up for Phase 1, stepping up to 100 percent renewable electricity for the entire facility by 2040.
The hydrogen would power a proposed floating data center campus known as Datapark+, which received regulatory approval last year.
Keppel currently has seven operational data centers within the Singaporean market. In March, it completed external construction work on its eighth project in the country.
The six-story Keppel DC Singapore 8 has a net lettable area of approximately 100,882 sq ft (9,372 sqm). It is fully leased to cloud services, Internet, enterprise, and telecommunications clients.
