Keppel allies with Indian energy firm for sustainable fuels production
Singapore-based Keppel Corporation, through its Infrastructure Division, and AM Green, which is wholly owned and controlled by the founders of India-based Greenko Group, have signed a memorandum of understanding (MoU) to jointly explore opportunities to produce biogenic carbon-based sustainable fuels, such as bio and green methanol, second-generation (2G) ethanol and sustainable aviation fuel (SAF). The MoU was signed against the backdrop of COP28 in Dubai, UAE.
Specifically, the two parties will jointly identify, evaluate and co-develop projects in Southeast Asia and the Middle East, which according to Keppel, can harness and aggregate at least one million tons of biogenic carbon dioxide (CO2) per year to be used for the production of sustainable fuels in AM Green’s plants. These sustainable fuels are said to be able to serve as an environmentally sustainable alternative to fossil fuels to support the decarbonization of heavy industrial operations and the aviation sector.
In addition, Keppel said that the two companies will identify areas for collaboration in the value chain of a bio-methanol project in India, which aims to produce 500,000 tons of bio-methanol annually.
Keppel noted that biofuels, which are derived from organic material such as plant and animal biomass, make up the largest source of renewable energy in use globally, accounting for 55% of renewable energy and over 6% of the world’s energy supply, adding that the production and combustion of sustainable fuels significantly reduce greenhouse gas emissions, making them effective cleaner energy sources.
Keppel currently operates a 273,750-ton-per-year Anaerobic Digestion and Composting Plant in Qatar, which has the capacity to generate close to 110,000 m3 of biogas daily, which is converted into green electricity for operational use, as well as export to the grid.
Moreover, Keppel is involved in industrial carbon-capture feasibility studies for waste-to-energy facilities in Singapore and the United Kingdom (UK).
Cindy Lim, CEO of Keppel’s Infrastructure Division, stated: “Biofuels have an important role to play in decarbonizing industrial operations and the aviation sector... This partnership aims to spur the development of next-generation biofuels and sustainable aviation fuel in the region, which can serve as substitutes for fossil fuels.”
Mahesh Kolli, President of AM Green, commented: “We are excited to partner Keppel for this pioneering collaboration, which will propel the transformation of India towards being an exporter of renewable-energy-derived products such as green methanol and SAF.“
To note, the MoU is an extension of the collaboration between Keppel and Greenko that was signed in October 2022 to explore the feasibility of jointly developing a green ammonia production facility of at least 250,000 tons per year in India.
It also aligns with the launch of LeadIT 2.0 announced by India’s PM Narendra Modi at COP28 in Dubai. LeadIT 2.0 focuses on the co-development and transfer of low-carbon technology and financial assistance to emerging economies, Keppel said.
In regard to Keppel’s other energy endeavours, in 2023, the company joined the Central Queensland hydrogen (CQ-H2) project consortium to develop a large-scale green hydrogen project in Australia and signed an MoU with technology supplier Incitec Pivot Limited (IPL) on an industrial-scale green ammonia production facility in Australia.
Additionally, Keppel Data Centres, an arm of Keppel Corporation, and Australia-based energy company Woodside signed a non-binding heads of agreement (HoA) to evaluate the potential supply of liquid hydrogen to Singapore from Woodside’s production facilities.