Sembcorp to make S$10.5 billion renewables investment in brown to green transition

Vivienne Tay

Published Mon, Nov 6, 2023 · 10:34 AM

The S$10.5 billion sum translates to 75 per cent of Sembcorp's 2024 to 2028 total investments. PHOTO: SEMBCORP INDUSTRIES

SEMBCORP Industries will invest about S$10.5 billion in renewables, it said on Monday (Nov 6) in its 2023-2028 strategic plan announcement.

The investment comes as the energy player looks to grow its gross installed renewable capacity and halve its emission intensity by 2028.

The S$10.5 billion sum translates to 75 per cent of its 2024 to 2028 total investments.

For the remaining investment allocation, the group plans to place 10 per cent of its capital in hydrogen-ready assets, 10 per cent in decarbonisation solutions, and 5 per cent in its integrated urban solutions segment.

At present, Sembcorp’s gross renewables capacity stands at 12 gigawatts (GW) and comprises 61 per cent of its energy portfolio. It aims to grow this capacity to 25 GW by 2028.

Meanwhile, the group achieved its 2025 greenhouse gas emission intensity target of 0.40 tonnes in carbon dioxide equivalent per megawatt hour (tCO2e/MWh) in Scope 1 and 2 emissions. It aims to halve its emission intensity to 0.15 tCO2e/MWh from its 2023 forecasted level of 0.30 tCO2e/MWh.

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Sembcorp said it would continue to leverage gas as a transition fuel to fund its growth in renewables as its contracted gas portfolio provides cash flow visibility.

It plans to invest in capabilities that support its position in low-carbon energy, low-carbon feedstock and carbon management. This includes producing and consuming hydrogen and its derivatives.

Sembcorp’s shares were trading 0.8 per cent or S$0.04 higher at S$4.88 as at 10.03 am on Monday.

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