The Keppel Sakra Cogen Plant, which will be located in the Sakra sector of Jurong Island, is expected to be completed in the first half of 2026.
It will produce up to 600 megawatts of electricity, or about 8 per cent of the country’s peak electricity demand in 2022.
“As electricity demand will continue to increase, we will need more generation capacity while ensuring that the power sector transitions to a net-zero future,” said Mr Ngiam Shih Chun, chief executive of the Energy Market Authority.
“The hydrogen-ready Keppel Sakra Cogen Plant is a good example of the infrastructure we need, and we encourage other generation companies to make similar investments.”