Sembcorp Industries' first S'pore solar energy project to be operational by year's end (Amended)

THE first solar energy project in Singapore of Sembcorp Industries will be operational by year's end to provide renewable power to two airfreight terminals near Changi Airport.

The project will see a 3.6 megawatt grid-tied solar photovoltaic system being constructed on the rooftops of SATS Airfreight Terminals 5 and 6 near the airport, main board-listed Sembcorp Industries said in a filing to the Singapore Exchange after the market close on Friday.

This will be one of the largest single-location solar energy systems in the country, it said.

The project was made possible via an acquisition of 49 per cent of Changi Mega Solar, valued at S$2.6 million, which is developing the project. The acquisition was done through Sembcorp Industries' fully-owned subsidiary, Sembcorp Utilities.

The project is nearing completion and expected to start operating at the end of the year, subject to the relevant approvals from the authorities.

It is Sembcorp Industries' first solar energy project in Singapore, where it already has gas-fired, biomass and energy-from-waste projects. Worldwide, the company has a power portfolio of over 10,000 megawatts, comprising both thermal and renewable assets.

"With distributed solar energy likely to play a greater role in future energy solutions, this investment reflects the company's commitment to providing diverse and innovative solutions to our customers," it wrote.

The total consideration of S$2.6 million will be funded internally, said the release. The acquisition is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending Dec 31, 2016.

Sembcorp Industries' counter closed 3 Singapore cents, or 1.1 per cent higher on Friday at S$2.75 before the announcement.

Amendment note: An earlier version of this article wrote that the said project would be Sembcorp Industries' first solar energy project. It is actually its first in Singapore. The article above has been edited to reflect this.