Keppel bags two deals to provide ‘energy-as-a-service’ in Bangkok
Sharanya Pillai
KEPPEL Corp has secured two contracts to provide what it dubs “energy-as-a-service” (EaaS) in Bangkok’s Sam Yan Smart City, through its joint venture (JV) with Decarb Corp.
Keppel’s EaaS service enables businesses and building owners to enter a supply-and-service contract for energy usage and management without making significant upfront capital investments.
The Thai EaaS contracts are with Centara Watergate and Watergate Pavilion, a hotel and a shopping mall, Keppel announced in a Wednesday (June 14) bourse filing. The company will design and retrofit the buildings’ existing chilled-water systems to improve their energy efficiency and asset performance.
The projects are expected to be completed by 2024 and will have a combined design capacity of 1,350 Refrigeration Tonnes (RT).
Keppel said that this will reduce over 18,000 tonnes of carbon emissions over a 20-year period, equivalent to planting 12,500 trees. More than 23 per cent in cost savings are expected over the 20 years.
The plan is for Keppel to own and operate the systems throughout the contract period, via a long-term supply and service subscription. This EaaS model is the first of its kind in Thailand, Keppel said.
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Separately, Keppel and Decarb inked a Memorandum of Understanding (MOU) with the Thai Hospitality Management Company to implement EaaS, which includes cooling, solar photovoltaic systems and electric vehicle charging. A second such MOU was inked between Keppel, Decarb and the Thai Bonnet Trading Zone Company.
The proposed projects under the two MOUs are expected to commence in 2024, with a combined design capacity of more than 4,000 RT. They are expected to reduce over 58,000 tonnes of carbon emissions over 20 years, equivalent to planting 40,000 trees.
“The signing of the contracts and MOUs mark an important milestone in Keppel’s journey to bring EaaS to customers in the region,” said Lim Yong Wei, general manager for EaaS in Keppel’s infrastructure division.
On the same day of the signings, Keppel held a ground-breaking ceremony for the District Cooling System (DCS) plant serving the Sam Yan Smart City. The ceremony was held with two Thai JV partners, renewable energy company BCPG and engineering consultancy TEAM Consulting Engineering and Management.
The DCS plant has a project value of more than 7.5 billion baht (S$329 million) and will be implemented in phases to serve the Sam Yan Smart City master development. With a projected cooling load of 18,000 RT, it will serve eight developments, covering office, retail and residential properties.
Keppel will lead the operations and maintenance of the DCS plant for 20 years following the plant’s completion. The plant’s first phase is set to be operational in 2024.
Keppel does not expect the latest developments to have a material impact on its earnings per share for the current financial year. Its shares closed at S$6.69 on Wednesday, up 2.8 per cent.
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