Tuas Power to build hydrogen-ready power plant by 2031

A hydrogen-ready natural gas power plant will commence operations in 2031, according to local electricity generator Tuas Power. The combined cycle gas turbine facility, located at Tuas Power Station, boasts a capacity of 670MW, capable of powering roughly 1.2 million four-room flats annually. The plant has the ability to burn up to 30% hydrogen, with natural gas constituting the remainder, for electricity generation. Diesel can also serve as a backup fuel when necessary.

The Energy Market Authority (EMA) announced on August 20 that Tuas Power had been granted the right to build, own, and operate the new CCGT generating unit. In April, the authority invited energy companies to construct up to three new hydrogen-compatible power plants by 2031 and 2032 to cater to Singapore's future electricity requirements.

With this approval, there will be at least 11 hydrogen-ready natural gas power plants in Singapore by 2032, including four already completed in 2025. Tuas Power stated that the new plant will not only address Singapore's growing electricity demand but also replace ageing generators set to retire over the next decade. The plant is set to commence operations in December 2031, the company added.

Industry experts estimate the plant's cost to range between $700 million and $1 billion, contingent on tender outcomes. Starting from 2024, all new and repowered natural gas power plants must achieve a 10% increase in efficiency and have the capability to utilize at least 30% hydrogen, as the low-carbon energy source becomes viable.

Singapore's electricity demand is anticipated to surge rapidly due to robust economic growth, transport electrification, and the development of energy-intensive sectors like semiconductor manufacturing and data centres. The EMA projects peak electricity demand to rise by 2.4% to 4.8% annually over the next decade, with peak demand expected to reach between 9.6GW and 11.4GW by 2031.

In 2025, peak demand was approximately 8GW. The call for new power plants emerged in April following the completion of four backup power units in 2025. These fast-start plants, designed to kick-start within minutes during power supply shortages, include those constructed by PacificLight Power, Meranti Power, Keppel, Sembcorp, and YTL PowerSeraya, with the latter's facility slated for 2027 and PacificLight Power's 670MW plant for 2029.