Sembcorp Industries has signed an agreement to install and operate rooftop solar farms at three logistics warehouses in Singapore owned by Cache Logistics Trust.
Under the arrangement, the integrated energy player will install, own and operate rooftop solar panels with a combined capacity of 7.9 MW peak, atop Cache’s Commodity Hub, Pandan Logistics Hub and Cache Changi Districentre 1.
When completed, Commodity Hub will house Singapore’s largest rooftop solar facility to date, representing some 6.2 MW in peak capacity.
When fully installed in mid-2019, the system is expected to produce over 9,400 megawatt hours of power annually, or enough renewable energy to power more than 2,000 four-room HDB flats in a single year.
Sembcorp says the solar panels will provide renewable energy and significantly lower the carbon footprint for Cache. Any surplus solar power generated will be channelled to the grid.
The project will also help avoid close to four million kilogrammes of carbon dioxide emissions a year — equivalent to emissions avoided from taking almost 860 cars off the road or planting more than 47,000 trees.
Koh Chiap Khiong, Head of Singapore, Southeast Asia & China (Energy), Sembcorp, says the new project will not only grow Sembcorp’s solar portfolio in Singapore with the installation of over 20,000 solar panels and help meet Singapore’s target of 350 megawatts peak solar power capacity by 2020.
The signing of this agreement is not expected to have a material impact on the earnings or the net asset value per unit or per share of Cache or Sembcorp for the financial year ending December 31, 2019.
Shares in Sembcorp last traded at $2.51 on Wednesday.