Keppel announces a new project worth $950 million to the company

Keppel Corporation has been awarded an order with the Urban Redevelopment Authority (URA) to build, design and manage an all-new district cooling (DCS) installation for a period of 30 years, located inside the Jurong Lake District (JLD). This contract will be expected generate approximately $900 million to Keppel which will be a combination of payment from property developers owners, occupants and owners for the design and construction of the DCS and the provision of chilled water as well as operation and upkeep of the DCS for a period of 30 years.

Grand Dunman location in the tightly held neighbourhood of Tanjong Katong, Dunman Road GLS residential property in a quintessential environment.

The DCS will be designed to have a capacity of 29,000 Refrigeration Tonnes (RT) to provide chilled water and other related facilities to up to 1.4 million square meters Gross Floor Area (sqm GFA) and will support future developments in JLD which include office business park retail, residential hotels, and other institutional uses. The DCS will operate when the construction is completed of any future developments within JLD.

In Keppel’s announcement it is Keppel’s DCS solution for JLD is able to achieve higher efficiency levels that are 30% greater than conventional in-building systems, and 18% greater that the National Environmental Agency’s Minimum Energy Efficiency Standards (MEES) in addition to realizing significant cost savings that can reach 30% when compared to traditional systems. Its JLD DCS plant is estimated to reduce around 15,000 tons of carbon dioxide emissions over a 30-year period of operation, when in comparison to the industry standard. This amounts to the carbon reduction of plant 100,000 trees.

The company announced in May that Keppel revealed that it was moving from a conglomerate to an international alternative actual asset management company. The primary focus will be an asset-light model that will increase AUM up to $100 billion in the near future.

The structure of the group is set to be simplified into an integrated horizontal model that includes three platform types: Fund Management, Investment and Operating Platforms which are all made up of a single business that is focused upon investing into and developing solutions to sustain the planet.

After the announcement of energy-as-a service in Thailand on the 14th of June the price of Keppel’s shares increased by 5.5% to $7.05 but it has since fallen back. Keppel ended the day with a price of $6.60.