Publish Date : 25-Sep-2018
Sembcorp Industries (Sembcorp) is pleased to announce that it has signed a long-term solar energy deal with US-headquartered tech company, Facebook. Under this deal, Sembcorp will help provide locally-sourced renewable power to support Facebooks recently announced 170,000 square metre Singapore data centre, as well as its other Singapore operations, over the next 20 years.
Sembcorp is a homegrown Singapore power player with over two decades in the business. It is the only established power gentailer (generation affiliated retailer) in the country to offer renewable energy, and has one of Singapores largest solar power portfolios. Sembcorp will serve Facebooks renewable energy needs through offsite solar panels totaling 50 MWp in capacity. These panels will be installed on close to 900 rooftops in the land-scarce island state, between the end of this year and 2020.
Koh Chiap Khiong, Head of Sembcorps energy business in Singapore, Southeast Asia and China, said, At Sembcorp, our goal is to provide energy that makes a difference. One key way is through providing clean energy to companies and our community. Against this background, Sembcorp is very honoured to become Facebooks first renewable energy partner in Asia, with our new 20-year solar power deal. This demonstrates our ability to offer clients a strong value proposition to support their power needs and meet their environmental goals at the same time. We look forward to working with more companies for such solutions in the future.
Commenting on the deal, Neil McGregor, Group President & CEO of Sembcorp Industries, said, Our deal with Facebook is an example of how Sembcorp is aligning its business to the future. As our world moves towards renewables and lower-carbon energy, there is an increasing demand for solutions that enable businesses to achieve growth while managing their impact on the environment. Sembcorp is actively working with companies in this, and supporting their efforts towards this dual objective.
Bobby Hollis, Head of Global Energy at Facebook, also welcomed the deal. This agreement represents our first step towards supporting our Singapore Data Center and local offices with 100% renewable energy, he said. We are thrilled to have Sembcorp as our partner on this project and excited to see the continued acceleration in the growth of the renewable energy market in Singapore.
Sembcorp has a strong commitment to sustainability. The company has been steadily growing its renewable energy business, and now has over 2,500 megawatts of wind and solar power projects across Singapore, China and India. Earlier this year the company announced ambitious targets to double its renewables portfolio and reduce its carbon intensity by around 25% by 2022.
This contract involves the sale of 100% of the renewable energy attributes from the surplus power generated by Sembcorps 50 MWp of solar panels. These sales will commence in tandem with the installation of the rooftop panels between end-2018 and 2020. The contract is not expected to have a material impact on the earnings per share and net asset value of Sembcorp Industries for the financial year ending December 31, 2018.
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