Together with an earlier contract, approximately 14,000 households across 12 Tengah BTO projects will have access to Keppel’s Centralised Cooling System.

The Housing & Development Board (HDB) has awarded Keppel Ltd.’s Infrastructure Division (Keppel) a chilled water supply contract to design, install, and operate Centralised Cooling Systems (CCS), which are residential cooling systems, at nine upcoming Build-To-Order (BTO) projects in Tengah. Under this 20-year contract, approximately 10,000 households within Tengah’s Brickland, Park and Forest Hill districts can engage Keppel to provide chilled water to cool their homes.

This is Keppel’s second CCS contract for Tengah BTO projects. The first was awarded in September 2024 for three Tengah BTO projects (Brickland Weave, Plantation Edge I & II, and Plantation Verge) over a 20-year period. With this latest award, a total of 14,000 households across 12 BTO projects in Tengah will have access to the CCS provided by Keppel. This expansion reflects the continued rollout of centralised cooling to realise the vision of Tengah as a smart and sustainable town.

Eco-Friendly and Energy-Efficient Cooling System

HDB homebuyers in Tengah have the option of subscribing to the CCS, which offers a more energy-efficient cooling solution as compared to conventional air-conditioning systems. With the CCS, chilled water will be piped to homes from centralised chillers to cool the flats, without the need for individual condensers. Using up to 30% less energy, CCS can meet residents’ air-conditioning needs in an eco-friendly way. Residents who subscribe to CCS early can enjoy the convenience of having air-conditioning ready upon key collection.

Mr Tan Sze Tiong, Chief Sustainability Officer of HDB, said, “HDB is committed to realising the vision of Tengah as Singapore’s first and largest smart and sustainable HDB town. We are pleased to continue partnering Keppel as the Centralised Cooling System service provider for another nine upcoming BTO projects in Tengah. This gives more residents the option of an energy-efficient alternative to conventional air-conditioning, while contributing to more sustainable living.”

Mr Poh Tiong Keng, Executive Director, Energy-as-a-Service, Keppel, said, “Tengah’s Centralised Cooling System delivers chilled water from high-efficiency chiller plants to homes, improving energy efficiency while enhancing comfort and ease of maintenance for residents. Homeowners who subscribe to the cooling service will benefit from a proven, modern system designed for long-term reliability and efficiency, potential cost savings with lower upfront equipment costs, reduced maintenance requirements, and predictable life cycle performance. We appreciate HDB’s continued trust in Keppel to deliver cooling utilities for dwelling units in Tengah. We look forward to partnering HDB to advance more liveable and sustainable townships in Singapore.”

Enhancing Residents’ CCS Experience

Keppel is committed to delivering consistent and reliable cooling services for residents who subscribe to the CCS. Keppel will incorporate engineering and design features to improve performance and better integrate the system within the homes. Within the flats, the design and placement of chilled water pipes will be optimised, taking into account interior aesthetics where feasible and giving residents flexibility in planning their home layout. Keppel will work closely with HDB on the delivery of the CCS to subscribing households (refer to Annex A for more details).

When completed, the CCS at the 12 BTO projects will be connected to Keppel’s Operations Nerve Centre (ONC) for remote control and real-time performance monitoring. Using AI and machine learning, the ONC analyses operational data to support predictive maintenance, detect anomalies, forecast cooling demand, and optimise plant performance. This enables more proactive system management, higher reliability and continuous efficiency improvements over time.

Homeowners can visit Keppel’s The Cooling Studio at HDB Hub in Toa Payoh to learn more about the benefits of CCS and view a full-scale mock-up of a typical home unit, including the system’s features and installation. They can also view Keppel’s CCS virtual tours, explore price plans, book an appointment to visit the Cooling Studio or sign up for CCS via Keppel’s website at https://www.keppeleaas.com/residential-cooling.

The abovementioned contract is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Ltd. for the current financial year.

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Annex A 

HDB and Keppel’s Roles in CCS

As the master developer of public housing in Singapore, HDB plays a key role in supporting the nation’s commitment to sustainable development. Tengah is Singapore’s first and largest smart and sustainable HDB town, planned with green and sustainable features and smart technologies from the outset.

As the developer of the public housing project, HDB focuses on project planning and the construction of BTO developments, including scheduling various works to facilitate the installation, testing, and commissioning of the CCS. This enables service providers such as Keppel to deliver cooling services to flat buyers in Tengah.

Together with the CCS service provider, HDB designs and provides CCS-ready infrastructure, including strengthened roofs or designated plant areas, provision of electricity for the CCS plant, and risers and common areas for the chilled water pipes. For residents who choose not to opt-in for the CCS and prefer their own air-conditioning system, HDB has also made provisions for air-conditioner ledges in all flats in Tengah.

Keppel works closely with HDB and its building consultants to determine the optimal routing of the chilled water pipes within the precincts and individual dwelling unit.

Keppel also manages the sign-ups, design, installation, project management, operation and maintenance of the CCS. This includes marketing the CCS and handling contractual arrangements with residents, which are commercial matters and relate to individual preferences for cooling their units. HDB is not a party to Keppel’s contractual agreement with the subscribers.

HDB will support Keppel to ensure that the roll-out of CCS in the BTO projects within Tengah proceeds smoothly.

About Housing & Development Board

The Housing & Development Board (HDB) is Singapore's public housing authority. We plan and develop Singapore's housing estates; building homes and transforming towns to create a quality living environment for all. We also provide various commercial, recreational, and social amenities in our towns for our residents’ convenience. Today, more than 1 million flats have been completed in 24 towns and 3 estates across Singapore. HDB flats are home to about 80% of Singapore's resident population, of which about 90% own their homes. For more information, please visit http://www.hdb.gov.sg.

About Keppel

Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.

Keppel has a combined cooling portfolio of more than 385,000 refrigeration tonnes in the region^[1]. The award in respect of these nine additional BTO projects in Tengah build on Keppel’s track record of awarded cooling projects in the western region of Singapore, such as district cooling for the Jurong Innovation District and Jurong Lake District.

^[1] Including assets under development.