Keppel, ADB, EnterpriseSG to explore US$800 million of energy and environmental projects

KEPPEL has inked a memorandum of understanding (MOU) with the Asian Development Bank (ADB) and Enterprise Singapore (EnterpriseSG) to explore US$800 million in energy-transition and environmental-sustainability opportunities in the Asia-Pacific region.

These projects are expected to be a part of the pipeline of infrastructure assets for Keppel ’s private funds and listed business trust, the asset manager said on Tuesday (Aug 20).

Keppel will develop and operate these projects, which include decarbonisation of power generation, renewable energy, electric mobility and green buildings. Collectively, they may abate the equivalent of at least a million tonnes of CO2 per year, the mainboard-listed company said.

The organisations will also cooperate on blended finance (the mixing of private and public financing), which may include concessionary financing. This will “further improve bankability, support development outcomes and help mobilise private investment for the projects”, Keppel said.

The companies will initially explore opportunities in South-east Asia, targeting a total project value of US$800 million between 2025 and 2030.

The MOU was signed by Cindy Lim, the chief executive officer of Keppel’s infrastructure division; Bhargav Dasgupta, vice-president for market solutions of ADB; and Cindy Khoo, managing director of EnterpriseSG. The signing took place at the ADB’s headquarters in Manila.

Lim said that Keppel offers technical expertise and solutions for large-scale sustainable infrastructure projects, and can mobilise external capital from its partners.

Together with ADB’s concessionary financing and expertise in regional cooperation, as well as EnterpriseSG’s deal-matching and market access capabilities, the partnership is in a unique position to “drive impactful change and help the region achieve green growth”, she added.

EnterpriseSG’s Khoo said collaboration between the public and private sectors will be crucial in accelerating the development and deployment of climate tech solutions at scale.

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“We are excited to be part of this effort, and look forward to supporting more home-grown global enterprises like Keppel in deepening their overseas footprint, while contributing to the advancement of sustainable development in the region,” she said.

In other recent energy-transition initiatives, Keppel signed an MOU with ACEN and GenZero on Aug 16 to explore the origination and utilisation of transition credits, to facilitate the earlier retirement of a coal-fired power plant in the Philippines.

The development study under this MOU will explore transitioning from coal to renewables, and replacing the plant’s output with a solar plant and battery storage.

Keppel shares closed S$0.11 or 1.8 per cent higher at S$6.11 on Tuesday.