SINGAPORE — Keppel Data Centres Holding Pte Ltd. and Shell Eastern Petroleum Ltd. signed a memorandum of understanding to jointly study the feasibility of developing a low-carbon energy hub and microgrid system in Singapore. 

Keppel and Shell will collaborate by leveraging each other’s expertise to evaluate the commercial and technical feasibility of establishing a low-carbon energy hub that can power both companies’ assets. 

The hub is envisaged to take inputs from various sustainable energy sources, including but not limited to imported renewable power and locally produced or imported hydrogen power. The hub would be developed around various energy-related infrastructure components, such as cable landings and turbines, with a microgrid system at its core. 

A microgrid is a self-contained power supply network that is designed to generate its own power locally and provide energy to a specific group of interconnected energy users within a definable boundary.

Both Keppel and Shell will also explore the project’s scalability and exportability to other sites and overseas markets. 

“We are committed to make our data center operations more sustainable through a broad range of low-energy technologies,” said Wong Wai Meng, CEO of Keppel Data Centres. “Our collaboration with Shell presents new opportunities to design innovative solutions and potential game-changers in making data center operations carbon neutral as we help our clients on their journeys to net-zero.”

“Shell has started lowering its own emissions through the ongoing transformation of the Shell Energy and Chemicals Park Singapore, and we have announced investment in the production of circular chemicals and low-carbon products,” said Thomas Wong, general manager, Shell Energy and Chemicals Park Singapore. “Energy transition requires all of us to keep finding innovative ways to cut emissions and develop a cleaner energy system. We look forward to working with our customers and partners, such as Keppel Data Centres, to look into low-carbon solutions so that we can decarbonize together.”