Opening Remarks by MOS Low Yen Ling at Agreement Presentation Ceremony between Sembcorp Industries, Mitsubishi Heavy Industries and Jurong Engineering Limited

Mr Koh Chiap Khiong, CEO, Sembcorp, Singapore & Southeast Asia, Sembcorp Industries,

Mr Akihiro Ondo, CEO of Mitsubishi Power Asia Pacific

Mr Koichi Watanabe, CEO of Jurong Engineering Limited

Mr Ngiam Shih Chun, Chief Executive, EMA

1. A very good afternoon to all of you.

2. Congratulations, Sembcorp Industries, Mitsubishi Heavy Industries (MHI) and Jurong Engineering Limited (JEL) on the successful agreements you are signing this afternoon. We look forward to the partnership between MHI and JEL on the Engineering, Procurement and Construction (EPC) contract, and the Long-Term Service Agreement between Sembcorp and MHI. Today, we mark an important milestone in the development of Sembcorp’s 600MW hydrogen-ready power plant. Thank you for inviting me to be part of this significant event.

3. This hydrogen-ready power plant will be one of the first Combined Cycle Gas Turbines (or CCGTs) to be established in Singapore since 2016.

a. Even as Singapore embarks on our energy transition, CCGTs will still play an important role in providing the baseload energy supply to Singapore’s power system over the next few decades.

b. As older CCGTs retire and electricity demand grows, we will need more new CCGTs in the coming years. I am glad that Sembcorp, MHI and JEL are targeting to complete the power plant by 2026. This will help meet growing demand and ensure a reliable electricity supply.

4. Even as we meet today's system demands, we need to be prepared for the future. For the power sector, this would mean getting ready for the adoption of low-carbon energy fuels such as hydrogen.

a. I am glad to learn that Sembcorp’s power plant, which will run primarily on natural gas as a start, will have the capability to operate on fuels with 30% hydrogen content.

b. It can also be enhanced to run entirely on hydrogen in the future.

c. These future-ready capabilities will pave the way for Singapore to transit to other low-carbon energy fuels when commercially viable.

5. Today marks a significant step towards realising Singapore's vision of a sustainable and resilient energy future. Congratulations once again, on achieving this important milestone.