Keppel secures US$70 million worth of contracts to provide ‘energy-as-a-service’ in Vietnam

KEPPEL on Monday (Jul 10) announced that it has secured US$70 million worth of contracts to provide long-term and recurring “energy-as-a-service” (EaaS) in Vietnam.

Keppel’s EaaS enables businesses and building owners to enter a supply-and-service contract for energy usage and management without making significant upfront capital investments.

Under the new contracts, Keppel will provide the service to Republic Holiday Inn, Republic Suite Plaza and Estella Place in Ho Chi Minh City, as well as Grand Mercure Hotel & Resort in Quang Binh province.

The contracts were signed on Monday at the opening of a state-of-the-art Operations Nerve Centre at Keppel’s 64 hectare integrated township Saigon Sports City, which is being developed in District 2 in Ho Chi Minh City, said the company.

The centre enables Keppel to remotely monitor and optimise all of its energy assets in Vietnam in real time by tapping digital technology, artificial intelligence and machine learning. “This greatly enhances the efficiency, reliability and scalability of Keppel’s EaaS solutions and delivers superior sustainability performance and economic value to its customers and users,” said Keppel.

As part of the new contracts, Keppel will also design and retrofit the existing cooling systems of its clients’ developments to improve energy efficiency and asset performance. The projects are expected to be completed in phases and are projected to offset over 3,500 tonnes of carbon emissions annually.

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“The signing of our latest contracts and the opening of our advanced Operations Nerve Centre here in Ho Chi Minh City are significant steps forward in the expansion of our EaaS offerings and track record in Asia,” said Poh Tiong Keng, Keppel’s general manager for its Vietnam and India infrastructure division.

At the opening ceremony, Keppel also signed several Memorandums of Understanding with various partners in Vietnam – including Filmore Group and real estate company Alphanam Group – to explore implementing other types of EaaS offerings, including cooling, solar photovoltaic systems and electric vehicle charging.

Shares of Keppel closed S$0.02 or 0.3 per cent higher at S$6.47 on Monday, before the announcement.