Keppel bags district cooling system order, expects to generate S$950m in payments
Tay Peck Gek
KEPPEL Corporation has clinched a contract to design, build, own and operate a new large-scale district cooling system (DCS) plant for 30 years, during which the conglomerate expects to generate about S$950 million.
In a bourse statement filed on Tuesday (Jun 20), Keppel said the deal won by its infrastructure division from the Urban Redevelopment Authority is for a DCS plant in the Jurong Lake District.
The plant will have a design capacity of 29,000 refrigeration tonnes (RT) to supply chilled water and related services to an estimated 1.4 million-square-metre gross floor area and is intended to serve future developments in the district, including offices, business parks, residential, retail, hotel and institutional uses.
This will bring in estimated payments amounting to about S$950 million from real estate developers, owners and occupants for the design and building of the DCS, as well as the supply of chilled water and operations and maintenance of the DCS over 30 years.
The plant is scalable in phases and brings Keppel’s total district cooling capacity to 208,000 RT in Singapore and abroad.
The facility is capable of achieving superior efficiency levels that are over 30 per cent higher than conventional in-building systems and 18 per cent higher than the National Environmental Agency’s Minimum Energy Efficiency Standards (MEES), as well as garner significant cost savings of up to 30 per cent, said the filing.
In total, the DCS is estimated to be able to reduce over 145,000 tonnes of carbon emissions over the 30-year operating period, equivalent to planting 100,000 trees.
Keppel does not expect the order to have any material impact on its earnings per share and net tangible asset per share for the current financial year.
Keppel shares dropped by 5.2 per cent to S$6.60 at market close on Tuesday, before this announcement was made.
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