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SATS, Sembcorp join hands for green push, starting with solar energy systems

SATS is partnering Sembcorp Industries to develop solutions which help the ground handler and caterer reduce its environmental footprint across several facilities.

This will help SATS achieve its sustainability goal of 80 per cent reduction of its carbon footprint by 2030, both companies said in a Tuesday joint announcement on the signing of a memorandum of understanding.

One of the first initiatives under the partnership is the implementation of solar energy systems to power SATS’ onsite operations.

This will see Sembcorp install, own and operate rooftop solar panels with a combined capacity of 7.8 megawatts atop SATS Airfrieght Terminals 1 to 4, both of SATS’ inflight catering centres and its maintenance workshop.

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Through the move, 12.4 per cent of SATS' total energy consumption will comprise renewable energy. This is expected to reduce 4.1 million kilogrammes of carbon dioxide emissions per year – equal to removing some 887 cars from the roads annually.

SATS and Sembcorp will also be piloting the use of cogeneration solar panels to produce electricity and hot water through the use of new-generation technology. If successful, the technology will be expanded to all future SATS premises that require electricity and hot water.

Another part of the SATS-Sembcorp partnership includes the exploration of trucking liquefied natural gas (LNG) to SATS and regasifying it to power boilers in both SATS’ inflight catering centres at Changi.

LNG is said to be a cleaner alternative to diesel, with 24 per cent less carbon dioxide emitted. To further reduce waste and optimise resources for SATS, Sembcorp will also aim to provide treatment for wastewater recycling.

The partnership builds on a previous tie-up in 2016 which saw SATS partnering Sembcorp to develop solar energy systems on the rooftop of SATS Airfreight Terminals 5 and 6 at Changi.

Neil McGregor, Sembcorp Industries group president and chief executive, said SATS was an early collaborator in the company’s renewable energy development journey.

"As an integrated energy player, bringing together novel sustainable solutions to reduce resources and energy costs for our customers is core to Sembcorp’s business proposition," he added.

SATS president and chief executive Alex Hungate said: "At SATS, our sustainability goals are to enable more people to eat well and connect seamlessly across Asia, while minimising the impact these activities have on our environment."

The partnership is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp and SATS, for the financial year ending Dec 31, 2019 and March 31, 2020 respectively, they added.