Keppel announces new project that will generate $950 million for the group

Keppel Corporation, the group formed by the transformation of the global alternative real asset manager, has secured a major contract to design, build, own and operate a new district cooling system (DCS) plant in the Jurong Lake District. It is expected to generate payments of around $950 million for Keppel, and the DCS has the capacity to supply chilled water for 1.4 million square metre gross floor area. The DCS is expected to be operational once some future developments are completed in the district.

Keppel Corporation, a global alternative real asset manager, has been awarded a contract from the Urban Redevelopment Authority (URA) to design, build, own and operate a new large-scale district cooling system (DCS) plant for 30 years located in Jurong Lake District (JLD). The proposed DCS is expected to contribute significantly in terms of cost savings and carbon emission abatement.

Keppel’s commitment to the project is estimated to bring in approximately $950 million over a period of 30 years, which includes 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 & maintenance of the DCS.

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

Keppel’s DCS solution for JLD has the potential to attain superior efficiency levels that are 30% higher than conventional in-building systems, and 18% higher than the National Environmental Agency’s Minimum Energy Efficiency Standards (MEES). Furthermore, 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 the equivalent of planting 100,000 trees.

The Myst CDL Aries is an iconic development located in the heart of Bukit Panjang and it offers an attractive and convenient living. It is situated minutes away from the nearby amenities, including shopping mall, hawker centre, sports centre and more. The condo is also nearby to schools, business spaces, parks and Tan Chong industrial park, and it has easy access to public transport networks, with Cashew MRT station being seven minutes away and Bukit Timah railway station being 13 minutes away from the Myst CDL Aries.

In light of the announcement made by Keppel in May, regarding the transformation from a conglomerate to an integrated business focused on investing in and creating solutions for a sustainable world, the news of the JLD DCS contract was seen positively by Keppel’s shareholders and the share price rose by 5% to $7.05. However, since then it has been on a declining trend and ended at $6.60 on June 20.