Sembcorp Secures Long-Term Power Purchase Agreements With GSK in Singapore

Singapore’s Sembcorp Industries (Sembcorp) announced that its wholly-owned subsidiary, Sembcorp Power Pte Ltd (Sembcorp Power), has secured long-term power purchase agreements (PPAs) with subsidiaries of global biopharma company, GSK.

Under the PPAs, Sembcorp Power will supply up to 10MW of electricity to all three of GSK’s global manufacturing sites in Singapore. Sembcorp will also be supplying up to 87,600MWh of renewable energy certificates annually to GSK from Sembcorp’s solar projects, enabling GSK’s manufacturing operations in Singapore to achieve its 100% purchased renewable electricity target by 2025. The PPAs have tenures of up to 10 years and will commence January 1, 2025.

As a leading renewable energy player in Asia with 14.4GW of global capacity, Sembcorp offers a comprehensive suite of solutions that supports customers in meeting their corporate sustainability goals.

The latest agreement caps a busy June for the energy firm. Earlier this month Sembcorp Green Hydrogen, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), signed a Heads of Terms (HoT) with Sojitz Corporation and Kyushu Electric Power Co, (the Consortium), paving the way for the Consortium to finalise a definitive green ammonia offtake agreement.

This builds on the Memorandum of Understanding signed by the Consortium and announced on December 18, 2023, to explore supplying Japan with green ammonia produced in India (the Project). 

As the lead developer and operator of the Project, Sembcorp will utilise renewable energy to produce an initial 200,000 metric tonnes per annum of green ammonia in India. 

While Sembcorp Industries (Sembcorp) announced that its wholly-owned subsidiary, Sembcorp Solar Vietnam Pte Ltd, has completed the acquisitions of majority interests in three out of four subsidiaries of GELEX Group Joint Stock Company (the Acquisition).

With the completion of the three aforesaid transactions in the Acquisition, Sembcorp has added a combined 196MW of operational wind and solar assets to its portfolio. As part of the Acquisition, Sembcorp will also acquire a 73% stake in a subsidiary of GELEX Group Joint Stock Company, which owns a 49MW hydropower asset. Upon completion of the entire Acquisition, Sembcorp’s gross renewable energy capacity in Vietnam will be 455MW while the Group’s gross renewable energy capacity will be 14.4GW.