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Sembcorp inks solar panel deal with Singapore Airlines, SIA Engineering

SEMBCORP Industries will build more than 20,000 solar panels, with a capacity of 8.2 megawatt-peak (MWp), for Singapore Airlines (SIA) and SIA Engineering Company (SIAEC), the three companies announced in a joint statement on Wednesday.

The deal takes the solar capacity pipeline for Sembcorp - which earlier this week bagged a public-sector project for a floating solar farm - to about 250MWp, including ongoing operations.

Under the power purchase agreement, Sembcorp’s wholly owned Sembcorp Solar subsidiary will install the panels at facilities such as SIA’s Airline House and training centre, as well as SIAEC hangars and an engine test facility, by June 2020. No value for the deal was disclosed in the announcement.

Any extra power will go to Changi Airport Group’s electrical grid, as well as the national grid, in an arrangement that was billed as part of “the SIA Group’s commitment towards renewable energy sources and more sustainable operations”.

The contract is not expected to materially affect SIA and SIAEC’s earnings and net asset per share for the year to March 31, 2020, nor that of Sembcorp for the year to Dec 31, 2020.

Sembcorp added S$0.05, or 2.49 per cent, to S$2.06 on Wednesday, before the announcement, while  SIA closed up by S$0.11, or 1.29 per cent, to S$8.64.