Woodside and Keppel Finalize Offtake Term Sheet for Liquid Hydrogen

Woodside and Keppel have signed a conditional Offtake Term Sheet for the supply and purchase of liquid hydrogen, intended to power Keppel’s data centers in Singapore. This agreement follows a non-binding Heads of Agreement established between the two parties in April 2023. The Term Sheet outlines commercial principles that could lead to a binding offtake agreement for liquid hydrogen supply starting as early as 2030. Woodside's proposed production facilities, including H2Perth, will be key sources for this hydrogen supply.

Keppel envisions integrating the potential liquid hydrogen supply into a broader, long-term utility-scale lower-carbon power portfolio to support its assets. Woodside CEO Meg O’Neill highlighted the significance of the Term Sheet, noting it as a crucial step forward in advancing hydrogen opportunities. She expressed enthusiasm about collaborating with Keppel to supply lower-carbon energy for its data centers, emphasizing Woodside’s longstanding reputation as a reliable energy supplier in Asia over the past 35 years.

Mr. Wong Wai Meng, CEO of Data Centres at Keppel, stated that the company is excited to strengthen its partnership with Woodside through this Offtake Term Sheet. He remarked that it could provide a dependable source of lower-carbon energy for their Singapore operations. Wong emphasized the importance of innovation and collaboration in the energy transition, indicating Keppel's commitment to future-proofing its data centers and assisting customers in their net-zero journeys.

The Term Sheet is contingent on several factors, including the successful negotiation and execution of a comprehensive Sale and Purchase Agreement and obtaining all necessary approvals. This agreement represents a significant advancement for both companies in their efforts to support the transition to lower-carbon energy solutions. As the demand for sustainable energy sources continues to grow, partnerships like this will be vital in shaping the future energy landscape and achieving net-zero goals.

Overall, this collaboration not only signifies progress in the hydrogen sector but also reinforces the commitment of both Woodside and Keppel to innovate and lead in the transition to a more sustainable energy future. By leveraging their respective strengths, they aim to create a reliable and environmentally friendly energy supply for critical infrastructure, aligning with global efforts to reduce carbon emissions and combat climate change.

Woodside is a global energy company based in Australia, fueled by a commitment to innovation and determination. As the world seeks affordable, reliable, and lower-carbon energy to facilitate a successful energy transition, Woodside plays a crucial role in providing energy for heating and cooling homes, powering lights, and supporting industries. The company aims to thrive during this global energy transition with a resilient, diversified portfolio that is low-cost and lower-carbon while remaining profitable.  Currently, Woodside's portfolio includes a wide range of oil and gas assets, and the company is actively developing new energy products and lower-carbon services. Woodside has set an ambitious goal to invest $5 billion in these new energy initiatives and lower-carbon services by 2030.