Introduction

On 28 September, PacificLight Power broke ground on Jurong Island on what will be Singapore’s largest and most efficient single power-generating unit. The S$1.2 billion, 670MW plant will run on natural gas when it opens in 2029. It is designed to burn hydrogen from day one and to move fully to hydrogen later. Together with Keppel’s new plant nearby and an ammonia pilot in development, it shows how Singapore plans to cut emissions from a power system that runs almost entirely on imported gas.

The PacificLight plant

The Energy Market Authority (EMA) awarded the project in January 2025 under its centralised process for new generation capacity. EMA chief executive Puah Kok Keong said continued investment in generation is important as electricity demand rises from advanced manufacturing, the digital economy and transport electrification.

Part of a wider build-out

PacificLight’s plant follows Keppel’s 600MW Sakra Cogen plant, which started commercial operations on 29 May 2026. It was Singapore’s first hydrogen-compatible combined-cycle plant. It can also co-fire up to 30% hydrogen and is expected to cut emissions by up to 220,000 tonnes of CO2 a year compared with average plant efficiency.

Alongside these, a Keppel-led consortium with Sumitomo and Advario was appointed in October 2025 to carry out the detailed engineering study for an ammonia project on Jurong Island. It would generate 55–65MW of power by burning imported low- or zero-carbon ammonia directly in a gas turbine, and provide at least 100,000 tonnes a year of ammonia bunkering for ships.

Under Singapore’s 2022 National Hydrogen Strategy, hydrogen could supply up to half of the country’s power needs by 2050. At this year’s National Day Rally, Prime Minister Lawrence Wong also announced a new western island to be formed by merging islands south of Jurong Island. He said it could host future power-generation infrastructure.

“Hydrogen-ready” is not hydrogen

These plants will run mainly on natural gas for years, and the hydrogen capability is an option for the future. Low-carbon hydrogen is still scarce and expensive, and Singapore will have to import it, most likely as ammonia or another carrier. The 2026 LNG disruption has shown how exposed a gas-dependent grid is to supply chokepoints. That makes diversifying fuel sources more urgent, but it does not make hydrogen cheaper in the near term.

What it means for business

The opportunities are mostly in the supply chain: long-term hydrogen and ammonia offtake contracts, import terminals and storage, certification of low-carbon fuels, and project finance for assets whose fuel mix will change over time. Japanese firms are already prominent, with Mitsubishi Power as builder and Sumitomo in the ammonia consortium. The PacificLight project shows that regional utilities are bidding for Singapore capacity too.

Contracts need attention. Power purchase agreements, fuel supply contracts and turbine warranties must allow for a shift from gas to hydrogen blends. They also need to say who bears the cost if hydrogen supply arrives late or costs more than planned.

Summary

Singapore has broken ground on its largest power plant, a hydrogen-ready, battery-backed 670MW unit due in 2029. It follows Keppel’s hydrogen-compatible plant, which began operating in May. These plants protect energy security now and keep options open for a future hydrogen economy that still depends on imported fuel at an acceptable price. Investors and advisers should focus on fuel supply, certification and contract flexibility.