In a significant move towards sustainable energy solutions, Australian energy giant Woodside and Singapore-based Keppel Corporation have signed a conditional Offtake Term Sheet for the supply and purchase of liquid hydrogen.
This agreement aims to power Keppel’s data centres in Singapore with a cleaner energy source.
The Term Sheet, signed on October 21, 2024, builds upon a non-binding Heads of Agreement established between the two companies in April 2023.
It outlines commercial principles that could lead to a binding offtake agreement for liquid hydrogen supply, potentially commencing as early as 2030.
Supply Sources: Woodside’s proposed production facilities, including the H2Perth project in Western Australia, are expected to be the primary sources of liquid hydrogen.
Long-term Strategy: Keppel intends to incorporate this potential liquid hydrogen supply into a broader, long-term utility-scale lower carbon power portfolio to fuel its assets.
Woodside CEO Meg O’Neill hailed the Term Sheet as a significant milestone in advancing hydrogen opportunities.
She stated: “We’re pleased to be working with Keppel on the potential for supply of lower carbon energy in the form of hydrogen to its data centres in Singapore.
“This opportunity builds on Woodside’s track record of being a safe and reliable supplier of energy to Asia for 35 years.”
Wong Wai Meng, CEO of Keppel Data Centres, expressed enthusiasm about the collaboration, stating: “As a leader in data centres, 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.”
This agreement represents a significant step towards decarbonising data centres, which are known for their high energy consumption.
By leveraging liquid hydrogen as a power source, Keppel aims to reduce emissions and align with global sustainability goals.
The partnership also aligns with the Singapore-Australia Green Economy Agreement, potentially creating new economic and trade opportunities in the region.
The Term Sheet remains conditional upon the negotiation and execution of a fully termed Sale and Purchase Agreement and obtaining all necessary approvals.
As the energy transition unfolds, this collaboration between Woodside and Keppel sets a precedent for innovative partnerships in the pursuit of lower-carbon energy solutions for data centres and other energy-intensive industries.