Since launching its Energy-as-a-Service (EaaS) solution in late-2021, Keppel has been steadily gaining market traction, securing some $2.1 billion worth of long-term subscription contracts in Singapore and the region. Over the last few months, Keppel has secured contracts and signed Memorandums of Understanding (MoUs) in Singapore, China, Vietnam and Thailand to offer EaaS solutions such as cooling-as-a-service, distributed photovoltaics (PV), electric vehicle charging infrastructure, renewable energy certificates and other low-carbon energy solutions.

EaaS solutions offer Keppel’s customers holistic end-to-end energy management solutions and services that support sustainable operations. Beyond being a one-stop shop for energy and decarbonisation solutions, key service features of EaaS also include zero-capex, efficiency guarantees, with lifetime asset maintenance and overhauls being undertaken by Keppel.


District Cooling System in Jurong Lake District
In June, Keppel was awarded a contract by the Urban Redevelopment Authority (URA) of Singapore to design, build, own and operate a new large-scale district cooling system (DCS) plant for 30 years located in the Jurong Lake District (JLD). The contract is expected to generate about $950 million for Keppel, comprising payments from real estate developers, owners and occupants for the design and building of the DCS, as well as the supply of chilled water and operations and maintenance of the DCS over 30 years.

The DCS will have a design capacity of 29,000 Refrigeration Tons (RT) to supply chilled water and related services to an estimated 1.4 million square metre gross floor area (sqm GFA) and is intended to serve future developments in JLD, including office, business park, residential, retail, hotel and institutional uses. The DCS will be operational in tandem with the completion of future developments in the district.

Through state-of-the-art technology and proven operating know-how, Keppel’s DCS solution for JLD can achieve superior efficiency levels which are over 30% higher than conventional in-building systems and 18% higher than the National Environment Agency’s Minimum Energy Efficiency Standards (MEES), as well as garner significant cost savings of up to 30% compared to conventional systems. With best-in-class design and operations, the JLD DCS plant is estimated to be able to abate over 145,000 tonnes of carbon emissions over the 30-year operating period, compared to the industry benchmark. This is equivalent to the carbon abatement of planting 100,000 trees.

Ms Cindy Lim, CEO, Infrastructure Division of Keppel, said, “This project will not only add to Keppel’s long-term, recurring operating income but also provide Keppel with a strong foothold to bring in other EaaS offerings, such as sales of electricity, solar photovoltaic systems, and EV charging solutions to businesses, communities and users in Singapore’s West region, further augmenting our position as a leading sustainability-centric asset manager and operator.”


Bringing EaaS to Guangzhou Knowledge City
Keppel signed an MOU with China-Singapore Guangzhou Knowledge City Investment & Development Co., Ltd (GKC JV Co) forming a strategic partnership to design and implement scalable and future-proofed sustainable, smart EaaS solutions in the China-Singapore Guangzhou Knowledge City (CSGKC).

The MOU was signed at the 13th Meeting of the Singapore–Guangdong Collaboration Council (SGCC) held in Singapore on 26 June, and witnessed by the Co-Chairmen of the SGCC, Mr Ong Ye Kung, Singapore’s Minister for Health, and Mr Wang Weizhong, Governor of Guangdong. 

Under the strategic partnership, Keppel and GKC JV Co will leverage their expertise, technology know-how and resources to explore the design and implementation, as well as operation and management of EaaS in CSGKC. These comprise energy saving and management solutions, solar photovoltaic systems, thermal energy batteries, and EV charging stations in buildings and projects. The solutions will be initially implemented in smaller integrated developments and mixed-use districts and, later on, expanded to larger scale district and township developments, laying the foundations for the development and advancement of a smart net-zero city.

The parties will also collaborate to set up an EaaS Operations Nerve Centre (eONC) within CSGKC. The eONC is envisioned to help accelerate decarbonisation in CSGKC by using the “living laboratory” concept to test bed innovative sustainability technologies and low-carbon energy solutions.

Keppel and GKC JV Co are currently also planning the roll-out of EaaS at the China-Singapore Smart Park (CSSP), located in the Start-Up Area of CSGKC (Phase 1 Development), which has 180,000 sqm GFA across 12 buildings, which offer areas for industrial incubation, industrial acceleration, exhibition, and residential use. Since its opening in June 2022, the CSSP has attracted more than 60 firms from the digital economy, green development, biomedicine, and smart city development sectors to establish a presence.

Mr Chen Changxin, CEO of GKC JV Co, said, “Green development is one of the key areas in the China-Singapore cooperation to upgrade and enhance the CSGKC, as well as an important engine for promoting CSGKC’s high-quality development. We will work together with Keppel to design and implement smart energy solutions, jointly promoting the innovative development of low-carbon technologies in the CSGKC and the transformation of regional energy.”


Keppel’s second Operations Nerve Centre premieres in Vietnam
In July, Keppel inked new EaaS contracts and collaboration MOUs at the opening of its state-of-the-art intelligent Operations Nerve Centre (ONC) located within Thu Duc City, the new innovation hub for Ho Chi Minh City, Vietnam.

The contracts, worth over US$70 million, are to provide long-term EaaS solutions 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.

Through its ONC, powered by proprietary algorithm, Keppel will be able to remotely monitor and optimise all of its energy assets in Vietnam in real-time, leveraging 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.

As part of the latest contracts, Keppel will 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 will have a combined design capacity of 8,000 Refrigeration Tonnes (RT). The projects are also expected to offset over 3,500 tonnes of carbon emissions annually, which is equivalent to the carbon abatement of taking more than 1,000 cars off the road.

On the same occasion, Keppel also signed several Memorandums of Understanding (MOUs) with various partners in Vietnam, such as Filmore Group, Thanh Dat and Alphanam Group, to explore implementing other types of EaaS services, which include cooling, solar photovoltaic systems and electric vehicle charging.


First EaaS in Thailand
In June, Keppel signed new EaaS contracts and MOUs, at the groundbreaking of the district cooling plant for the iconic Sam Yan Smart City in the heart of Bangkok.
 
Through its joint venture with Decarb Corporation Company Limited (Decarb), Keppel secured two contracts to provide EaaS for Centara Watergate and Watergate Pavilion, a hotel and a shopping mall in Bangkok.

Under the contracts, Keppel will design and retrofit the buildings’ existing chilled water systems to improve their energy efficiency and asset performance. More than 23% in cost savings are expected over the projects’ life cycles of 20 years. The projects are expected to be completed by 2024 and will have a combined design capacity of 1,350 RT. The projects are expected to reduce over 18,000 tonnes of carbon emissions over the 20-year period, which is equivalent to the carbon abatement of planting 12,500 trees.

It is envisaged that Keppel will own and operate the systems throughout the contract period, through a long-term supply and service subscription. This EaaS subscription model is the first of its kind in Thailand, which aims to provide fast go-to-market and customer centric energy efficiency solutions, and marks a significant milestone as Keppel continues to expand its cooling and EaaS portfolio regionally.

In addition, Keppel entered into MOUs with Decarb and Thai Hospitality Management Company Limited, as well as with Decarb and Thai Bonnet Trading Zone Company on EaaS projects which are expected to commence in 2024. The projects will have a combined design capacity of more than 4,000 RT and are expected to reduce over 58,000 tonnes of carbon emissions over 20 years, which is equivalent to the carbon abatement of 40,000 trees.

On the same day of the signings, Keppel and its joint venture partners held the groundbreaking ceremony for the District Cooling System (DCS) plant serving the iconic Sam Yan Smart City in Bangkok. The DCS plant, with a project value more than THB 7.5 billion (S$329 million) will be implemented in phases to serve the Sam Yan Smart City master development. The DCS plant will have a projected cooling load of 18,000 RT to serve the cooling needs of eight developments, covering office, retail and residential properties. Under the project, Keppel will lead the operations and maintenance of the DCS plant for 20 years following the plant’s completion to deliver energy efficient and reliable chilled water from the centralised DCS as part of its EaaS business. The first phase of the plant is set to be operational in 2024.


Pursuing energy transition opportunities in the Greater Bay Area
Keppel and The Hongkong and Shanghai Banking Corporation Limited (HSBC) through its Hong Kong Office have signed an MOU in Singapore on 24 July 2023, to explore opportunities to collaborate on decarbonisation solutions. Under the MOU, the parties will work towards jointly developing a Strategic Collaboration Framework to create and capture value brought about by market demand for decarbonisation and sustainability solutions in densely built-up urban cities and regions in the Greater Bay Area such as Guangzhou, Shenzhen and Hong Kong, and across Asia.

The MOU was signed by Ms Cindy Lim and Ms Luanne Lim, Chief Executive, Hong Kong, HSBC, in the presence of Mr Heng Swee Keat, Deputy Prime Minister of Singapore, and Mr John Lee, Chief Executive, Hong Kong Special Administrative Region, at an event in Singapore.

The parties’ cooperation under the MOU will draw on Keppel’s proprietary expertise and proven capabilities in developing, implementing, and operating innovative, reliable, and sustainable energy and environmental infrastructure, as well as HSBC’s ability to provide green financing to accelerate and scale up relevant climate change solutions and channel investments towards sustainable projects.

The MOU envisages that the parties will explore cooperation in market and client development, including leveraging Hong Kong’s green finance and technology expertise to support the acceleration of the region’s energy transition efforts.

Keppel is currently supporting Hong Kong with its first Integrated Waste Management Facility (IWMF) for municipal solid waste. In 2017, Keppel and Zhen Hua Engineering were awarded a contract by the Hong Kong government to design, build and operate an IWMF off the coast of Shek Kwu Chau.