Keppel Upgrades Second Merlimau Cogen Gas Turbine for Hydrogen Readiness and Enhanced Efficiency

Keppel Ltd has unveiled its intention to upgrade a second gas turbine unit at the Keppel Merlimau Cogen combined cycle power plant (KMC) situated on Jurong Island in Singapore.

This upgrade aims to improve the overall efficiency of KMC's operations, enhance operational reliability, and extend major maintenance intervals. It is projected to reduce KMC's carbon emissions by approximately 17,800 tCO2e annually, equivalent to removing more than 5,400 vehicles from the roads each year.

The upgrade involves enhancements to the gas turbine frame, encompassing upgrades to the turbine, compressor, and combustor, aimed at delivering state-of-the-art performance improvements for its class of combined cycle gas turbines. Funding for this upgrade is facilitated through the Genco Energy Efficiency Grant, which was granted by Singapore’s Energy Market Authority (EMA) in 2023. This grant is part of the Enhanced Industry Energy Efficiency Package, designed to assist power generation companies in enhancing energy efficiency and cutting carbon emissions from their facilities.

Keppel has begun preparations for the upgrade in close collaboration with the original equipment manufacturer. The project is scheduled for completion by the end of June 2025. Moreover, after specific modifications, the enhanced turbine will be capable of co-firing hydrogen blended with natural gas, aligning with Singapore’s efforts to decarbonize the power sector.

Ngiam Shih Chun, CEO of EMA, commented, “As Singapore moves towards more efficient power generation, enhancing the energy efficiency of existing plants is crucial for our energy sector's decarbonization. The upgrades at Keppel’s plant, backed by the Genco Energy Efficiency Grant, underscore EMA’s dedication to improving energy efficiency and lowering carbon emissions in the power generation sector. We are eager to continue collaborating with industry partners to drive our energy transition towards a sustainable future.”

Cindy Lim, CEO of Keppel’s Infrastructure Division, remarked, “Building on the proven reliability of our initial high-efficiency turbine upgrade completed in 2022, which has accumulated over 15,000 operating hours, Keppel is progressing with the upgrade of a second unit to enhance overall energy efficiency and reduce the carbon footprint of our integrated power operations. These upgraded units will be well-prepared for the shift towards low-carbon alternatives in electricity generation, aligning with Keppel’s decarbonization objectives. We extend our appreciation to EMA for their steadfast support.”

Singapore’s power sector accounts for approximately 40% of its total carbon emissions, primarily derived from natural gas, which constitutes 95% of electricity generation. Given the enduring prominence of gas in Singapore's energy mix, combined cycle gas turbines (CCGTs) will continue to be pivotal in the nation's energy framework. Improving energy efficiency and integrating hydrogen as a feedstock can significantly lower emissions from CCGT-based electricity generation.

Keppel successfully completed the first turbine upgrade at KMC in 2022, marking a Southeast Asian milestone. Both upgrades at KMC were supported by the Genco Energy Efficiency Grant, with the first unit achieving notable carbon reduction and efficiency enhancements. The scope of the second upgrade mirrors that of the first. Keppel operates a total of four power generation units in Singapore, totaling 1,300 MW, and is currently constructing an additional 600 MW hydrogen-ready, advanced, high-efficiency CCGT slated for completion by 2026. KMC is majority-owned by Keppel Infrastructure Trust (51%) and Keppel (49%). These upgrades at KMC showcase how Keppel leverages its robust expertise and operational capabilities to differentiate itself as a global asset manager and operator.