Woodside and Keppel move forward with liquid hydrogen supply deal

Australia-based energy company Woodside and Singapore-based asset manager and operator Keppel have signed a conditional offtake term sheet for the supply and purchase of liquid hydrogen aimed at powering Keppel’s data centers in Singapore.

The term sheet follows the signing of a non-binding heads of agreement (HoA) in April 2023, and according to the parties, tables commercial principles that may pave the way for an eventual binding offtake agreement for the supply of liquid hydrogen from as early as 2030.

The sources of liquid hydrogen would include Woodside’s proposed production facilities, including H2Perth in Western Australia, the companies said, adding that Keppel intends for the potential liquid hydrogen supply to form part of its larger, long-term utility-scale lower carbon power portfolio.

Woodside’s CEO Meg O’Neill commented: “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 Data Centres, Keppel, stated: “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.”

To note, the term sheet remains conditional upon, among others, the negotiation and execution of a fully-termed sale and purchase agreement (SPA) and obtaining all necessary approvals.