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Singapore appoints three firms for 300 MW biomethane pilot

The 15-year regulatory sandbox is expected to receive its first biomethane supplies by end-2028, serving data centres and industrial manufacturers.

By Arif Rahman

Gas pipelines and power generation facilities in an industrial setting
Photo: The Business Times

Singapore has selected Keppel Energy, Sembcorp Utilities and Tuas Power Generation to import and supply biomethane under a pilot covering up to 300 megawatts (MW) of power generation. The Economic Development Board (EDB) announced the appointments on October 23.

The regulatory sandbox will operate for 15 years, with initial supplies expected by end-2028. Imports from regional and international sources will serve Singapore’s data centres and industrial manufacturers, either directly as gas or through electricity generated using biomethane.

Keppel Energy’s expected allocation is up to 120 MW, with Sembcorp Utilities also expected to import and supply up to 120 MW. Tuas Power will supply the remaining capacity. Plans for the sandbox were announced in October 2025 at Singapore International Energy Week.

EDB said biomethane could replace fossil natural gas using existing infrastructure, without requiring changes to equipment or industrial processes. With natural gas providing around 95 per cent of Singapore’s electricity generation, the agency said biomethane offered a way to cut emissions in power generation and gas-dependent industries.

Keppel separately said it would combine imported biomethane with natural gas in the fuel portfolio for its advanced combined cycle gas turbine plants on Jurong Island, while also supplying end-use customers. It said the resulting lower-carbon-intensity electricity could serve manufacturers and data centre operators, including Keppel, which recently received a provisional award of 50 MW in new data centre capacity.

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