Woodside and Keppel have signed a conditional offtake term sheet for the supply and purchase of liquid H₂ aimed at powering Keppel’s data centers in Singapore.

The term sheet follows the signing of a non-binding heads of agreement between the two parties in April 2023, and tables commercial principles that may pave the way for an eventual binding offtake agreement for the supply of liquid H₂ from as early as 2030. The sources of liquid H₂ would include Woodside’s proposed production facilities, including H2Perth.

Keppel intends for the potential liquid H₂ supply to form part of a larger, long-term utility-scale lower carbon power portfolio that Keppel is building to power its assets.

Woodside CEO Meg O’Neill said the Term Sheet was a significant milestone, underpinning progress on H₂ opportunities.

“We’re pleased to be working with Keppel on the potential for supply of lower carbon energy in the form of H₂ to their data centers 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, Data Centers, Keppel said, “As a leader in data centers, 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 like-minded partners to enhance and future proof our data centers as we position ourselves to better serve our customers on their journeys to net zero.”

The term sheet remains conditional upon, among others, the negotiation and execution of a fully termed sales and purchase agreement and obtaining all necessary approvals.