Keppel Corp unit to embark on first solar farm project

Singapore

A WHOLLY-owned subsidiary of Keppel Corporation has entered into an agreement to undertake the development of its first solar farm project, Keppel Corp said on Tuesday.

In the agreement signed through its wholly-owned subsidiary KRE Anchorage, Keppel Renewable Energy (KRE) agreed to pay a nominal sum of A$540 (S$545) for a 45 per cent stake in Harlin Solar Pty Ltd, a special purpose entity established in August 2020 to develop a large-scale greenfield solar farm in Queensland, Australia. The acquisition is subject to approval by Australia's Foreign Investment Review Board.

KRE also committed to provide a loan of up to A$3.24 million to fund the project's development cost.

Veteran developer Anthony Youssef and Australian renewable energy company New Energy Development hold the remaining 55 per cent of Harlin Solar's issued ordinary shares. Upon reaching certain development milestones, Keppel will have options to acquire the remaining stakes for an aggregate maximum consideration of A$52.35 million.

KRE will lead the development and management of the construction and operation of the solar farm, which will be located on a site measuring more than 2,000 hectares. Construction is expected to begin in 2022 and be completed in 2023.

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The project is expected to have a capacity of at least 500 MW, or enough energy to power more than 142,000 average Australian homes. It will be connected to the national energy market for public consumption and for businesses seeking sustainable energy solutions, including Keppel-related companies in Australia.

Chris Ong, managing director of KRE, said the project is part of Keppel's Vision 2030, which centres the group's strategy on sustainability and includes a goal of growing the group's portfolio of renewable assets to seven GW by 2030.

"Keppel Renewable Energy will collaborate with other business units and harness the technical and commercial capabilities across the group to develop, own and operate renewable energy infrastructure in a cost-efficient, safe and reliable manner," Mr Ong said, adding that KRE can also work with the group's asset management platforms to fund the project.

Keppel Corp shares closed at S$5.30 before the announcement, down 0.94 per cent or five Singapore cents.