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Keppel, AM Green to explore biogenic carbon-based sustainable fuels in Asia, Middle East

Jovi Ho
Jovi Ho • 3 min read
Keppel, AM Green to explore biogenic carbon-based sustainable fuels in Asia, Middle East
From left: Janice Bong, managing director, power and renewables, Keppel’s infrastructure division; Cindy Lim, CEO, Keppel’s infrastructure division; Mahesh Kolli, president, AM Green; Prasad Joshi, head of business development, AM Green Photo: Keppel
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Keppel Corporation’s infrastructure division (Keppel) and Indian energy producer AM Green have signed a memorandum of understanding (MOU) to jointly explore opportunities to produce biogenic carbon-based sustainable fuels.

This includes bio and green methanol, second-generation ethanol and sustainable aviation fuel (SAF). These sustainable fuels can serve as an “environmentally-sustainable alternative” to fossil fuels, according to their joint statement on Dec 11.

The MOU was signed against the backdrop of COP28 in Dubai. The two parties will jointly identify, evaluate and co-develop projects in Southeast Asia and the Middle East, which can harness and aggregate at least one million tonnes of biogenic carbon dioxide per year to be used for the production of sustainable fuels in AM Green’s plants.

In addition, Keppel and Greenko will also identify areas for collaboration in the value chain of a bio-methanol project in India. The project aims to produce 500,000 tonnes of bio-methanol annually. 

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. 

Keppel currently operates a 273,750 tonne-per-year Anaerobic Digestion & Composting Plant in Qatar, which was designed and built by Keppel in 2012. It is the world’s largest composting plant, and has the capacity to generate close to 110,000 cubic metres of biogas daily, which is converted into green electricity for operational use, as well as export to the grid. 

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Keppel is also involved in industrial carbon-capture feasibility studies for waste-to-energy facilities in Singapore and the UK.

Cindy Lim, chief executive of Keppel’s infrastructure division, says biofuels have an important role to play in decarbonising industrial operations and the aviation sector. “Keppel’s experience in handling and treating domestic waste and organic feedstock, as well as our know-how in effective carbon cycling will benefit this collaboration with AM Green. 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.”

AM Green is wholly owned and controlled by the founders of Hyderabad-based Greenko Group.  Mahesh Kolli, president of AM Green says the collaboration will propel the transformation of India towards being an exporter of renewable-energy derived products.

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This partnership follows an agreement between Keppel and Greenko signed in October 2022 to explore the feasibility of jointly developing a green ammonia production facility of at least 250,000 tonnes per year in India. 

The facility is envisaged to be powered by a portfolio of up to 1.3 gigawatts (GW) of solar and wind energy projects.

The MOU also aligns with the launch of LeadIT 2.0, announced by India’s Prime Minister 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. 

The collaboration is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corporation for the company’s current financial year. 

As at 9.35am, shares in Keppel are trading 5 cents lower, or 0.74% down, at $6.72.

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