October 21, 2024 [Storage Terminals Magazine]- Woodside and Keppel have signed a conditional Offtake Term Sheet for the supply and purchase of liquid hydrogen, aimed at powering Keppel’s data centres in Singapore. This agreement builds on the non-binding Heads of Agreement signed between the two companies in April 2023 and outlines the commercial principles that could lead to a binding offtake agreement for liquid hydrogen supply, potentially starting as early as 2030.
The liquid hydrogen supply would come from Woodside’s proposed production facilities, including the H2Perth project. For Keppel, this potential supply is intended to be a key component of a larger, long-term, utility-scale lower-carbon power portfolio that the company is developing to power its assets.
Woodside CEO Meg O’Neill highlighted the significance of the Term Sheet as a key step in advancing hydrogen opportunities. “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,” she said.
Wong Wai Meng, CEO of Data Centres at Keppel, also expressed enthusiasm for the collaboration. “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. As the energy transition unfolds, Keppel will continue to innovate and seek out likeminded partners to enhance and future-proof our data centres as we position ourselves to better serve our customers on their journeys to net zero.”
The Offtake Term Sheet remains conditional upon the successful negotiation and execution of a fully-termed Sale and Purchase Agreement, as well as obtaining the necessary approvals.
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