Keppel Ltd has announced plans to upgrade a second existing gas turbine unit at the Keppel Merlimau Cogen combined cycle power plant (KMC) on Singapore’s Jurong Island.
The upgrade aims to enhance KMC’s overall plant operations, increasing efficiency, operational reliability, and extending major maintenance intervals. It is expected to reduce KMC’s carbon emissions by at least 17,800 tCO2e per year, equivalent to removing over 5,400 vehicles from the roads annually.
The upgrade includes modifications to the gas turbine frame, turbine, compressor, and combustor, providing the most advanced performance improvements for a combined cycle gas turbine of its class. This project is supported by the Genco Energy Efficiency Grant, awarded by Singapore’s Energy Market Authority (EMA) in 2023 as part of the Enhanced Industry Energy Efficiency Package. This grant aims to support power generation companies in improving energy efficiency and reducing carbon emissions from their plants.
Keppel has begun preparations for the upgrade, collaborating closely with the original equipment manufacturer. The project is expected to be completed by the end of June 2025. Additionally, with certain modifications, the upgraded turbine will be capable of co-firing hydrogen blended with natural gas, supporting Singapore’s commitment to decarbonizing the power sector.
Mr. Ngiam Shih Chun, Chief Executive of EMA, stated, “As we transition to new, more efficient power generation plants, it is equally important that existing plants enhance their energy efficiency to contribute to the decarbonization of Singapore’s energy sector. Enhancements at Keppel’s plant, supported by the Genco Energy Efficiency Grant, demonstrate EMA’s commitment to improving energy efficiency and reducing carbon emissions among power generation companies. We look forward to further collaborations with industry partners as we advance our energy transition towards a sustainable future.”
Ms. Cindy Lim, CEO of Keppel’s Infrastructure Division, said, “Backed by the proven reliability of our first high-efficiency upgrade of one turbine of our electricity generation units completed in 2022, which has achieved over 15,000 operating hours, Keppel is undertaking an upgrade of a second unit to further improve the overall energy efficiency and lower the carbon emission intensity of our integrated power business. The upgraded units will be future-ready to facilitate the transition to low-carbon alternatives in electricity generation, in line with Keppel’s decarbonization goals. We thank EMA for their continued strong support.”
Singapore’s power sector contributes around 40% of its total carbon emissions, with 95% of electricity generated from natural gas. As gas remains a dominant fuel, combined cycle gas turbines (CCGTs) play a crucial role in Singapore’s energy landscape. Enhanced energy efficiency and the use of hydrogen as feedstock can contribute to reducing emissions from electricity generation by CCGTs.
Keppel completed the first turbine upgrade at KMC in 2022, the first in Southeast Asia. Both upgrades at KMC were awarded the Genco Energy Efficiency Grant, with the first unit successfully achieving carbon abatement and efficiency improvements. The second upgrade will mirror the scope of the first. Keppel operates four power generation units in Singapore, totaling 1300 MW, and is building another 600 MW hydrogen-ready, advanced, high-efficiency CCGT targeted for completion in 2026. KMC is 51% owned by Keppel Infrastructure Trust and 49% owned by Keppel. These upgrades demonstrate Keppel’s strong domain expertise and operating capability, differentiating it as a global asset manager and operator.
This development is not expected to materially impact Keppel’s net tangible assets per share or earnings per share for the current financial year.
