YTL PowerSeraya (YTLPS) has unveiled a range of partnerships aimed at supporting the energy transition coinciding with the commencement of Singapore International Energy Week (SIEW) 2025 on October 27, including a significant $500 million transition finance agreement from three banks.
DBS Group Holdings, Maybank, and Oversea-Chinese Banking Corporation (OCBC) have provided $500 million in transition financing to YTLPS for the development of its 600-megawatt (MW) hydrogen-ready combined cycle gas turbine (CCGT) plant at Pulau Seraya Power Station, which is set to be completed by the end of 2027.
This transaction marks Singapore’s first transition finance deal in alignment with the Singapore-Asia Taxonomy for Sustainable Finance (SAT) and the Asia Pacific Loan Market Association’s Green Loan Principles.
The financing is part of a larger $1.2 billion term loan facility offered to YTLPS by the same three banks, which also serve as joint sustainability structuring advisors.
The Monetary Authority of Singapore (MAS) introduced the SAT in December 2023, outlining specific thresholds and criteria to define green and transition activities that aid in climate change mitigation across eight focus sectors.
This framework enables banks to finance projects that might typically be deemed emissions-intensive, such as a new gas-fired power plant, provided they adhere to certain green and transition criteria.
In March, MAS published an informational note mapping eight existing deals by Singapore’s three banks to the SAT, with the aim of promoting agreements that align with the transition criteria.
The financing for YTLPS’s new plant has been categorized as transition finance as it complies with the SAT. Unlike sustainability-linked loans, this $500 million transition finance loan does not include sustainability performance targets.
Retrofit Project with Siemens Energy
Through its subsidiary, Taser Power, YTLPS is collaborating with Siemens Energy to implement its Advanced Turbine Efficiency Package (ATEP), revitalizing one of Singapore’s crucial power assets, the 396MW Taser Power Plant.
According to YTLPS, the retrofit will integrate high-efficiency hot gas path components featuring aerodynamic profiling, optimized cooling, and enhanced sealing. This upgrade will also improve operational flexibility and reliability by extending maintenance intervals and minimizing downtime.
Once completed in December, the plant will operate more efficiently and is projected to reduce up to 11,000 tonnes of carbon dioxide equivalent emissions annually.
Carbon Capture Feasibility Studies
To further decrease the carbon intensity of power generation, YTLPS has initiated two carbon capture feasibility studies, backed by the Energy Market Authority’s grant call for carbon capture and storage (CCS) in the power sector, focused on its 600MW hydrogen-ready CCGT.
The first study, in partnership with Air Liquide, aims to assess the potential integration of Air Liquide's proprietary Lurgi Autothermal Reforming (ATR) and Cryocap technologies into the upcoming CCGT.
This collaboration is designed to uncover viable methods for reducing carbon emissions and bolstering Singapore's energy transition.
Air Liquide asserts that Cryocap is the only proven capture technology capable of diminishing emissions from hydrogen production while simultaneously increasing hydrogen output by 10%-20%, utilizing a blend of membrane and cryogenic processes.
These solutions have the potential to abate up to 15 million tonnes of carbon emissions throughout the lifespan of the plant.
The second study, in collaboration with GE Vernova, involves evaluating the feasibility of capturing carbon emissions post-combustion.
GE Vernova is also a key consortium partner in the construction of YTLPS’s CCGT, marking its first hydrogen-ready CCGT in Singapore.
This feasibility study focuses on retrofitting YTLPS’s CCGT with technology capable of capturing at least 90% of the plant’s emissions.
Following the insights gained from these feasibility studies, YTLPS plans to work with EMA to deepen understanding of CCS pathways specific to the power sector, along with identifying infrastructure and site-specific requirements.
This dual approach positions YTLPS as one of only two companies in Singapore investigating both pre- and post-combustion carbon capture methods, alongside Keppel’s infrastructure division.
Lim Han Kwang, CEO of Geneco and deputy CEO of YTLPS, stated: “By investing in hydrogen-ready power generation, pioneering carbon capture technologies, and securing financing aligned with global sustainability standards, we’re laying the groundwork for a more resilient and decarbonized energy system.”