Interviews with Sembcorp Industries and with EDPR APAC
Vickrem Vijayan, Head, Energy Commercial, Sembcorp Industries
Could you introduce Sembcorp to our audience?
Sembcorp Industries (Sembcorp) in recent years has positioned itself as a renewable energy and sustainable solutions provider, transforming our portfolio from “brown” to “green”. Our global energy portfolio stands at about 19.4 GW, and renewable energy capacity across solar, wind, and energy storage is about 11.9 GW. In Singapore, we are now the largest renewable energy producer, with a gross solar capacity of over 565 MWp. In February this year, we commissioned a 285 MWh battery energy storage system on Jurong Island, the largest of its kind in Southeast Asia. We have structured long-term power purchase agreements with large corporates like Singtel and Micron in recent months. Some of these agreements comprise a corporate roadmap to meet decarbonisation goals, wherein the majority of power supplied is initially natural gas based, but gradually transitions to renewables-based energy over the next decade or so. Have you noticed any trends in demand from your customers?
Over the last 20 years, we have seen an increase in the number of specialty chemical companies on Jurong Island as compared to the past, where there were basic petrochemical manufacturing plants connected to typical refineries and crackers. There are also more companies that focus on sustainable solutions, such as biofuel products and sustainable aviation fuel. What other services do you provide to the petrochemical industry?
Traditionally, many plants on Jurong Island have outsourced their utilities to Sembcorp. For example, we provide steam to many companies, so they do not have to invest in boilers within their fence line.
One of the key advantages Jurong Island is that many petrochemical and chemical plants and facilities are located close together. On the sustainability front, industrial and carbon emissions from these plants can be aggregated and captured more easily due to their proximity and the mix of industries there presents advantages for carbon capture and sequestration projects.
Pedro Vasconcelos, CEO, EDPR APAC
Could you introduce EDPR APAC and your presence in Singapore?
EDPR is a global renewable energy player, operating in the wind and solar business. We entered the APAC region one and a half years ago, with headquarters in Singapore, through the acquisition of Sunseap, a leading solar power operator in Singapore and Southeast Asia. We are currently present in nine markets in APAC, with installed and under construction solar capacity at 1.2 GWp, of which more than 400 MWp is fully owned in Singapore.
Globally, we manage more than 15 GW in renewable capacity across 28 markets, the majority being in wind but with solar catching up rapidly. We have committed to ramping up growth to 4 GW per year from 2023 to 2026, through a €20 billion investment plan in wind and solar, of which EDPR APAC represents about 7% with a S$10 billion CAPEX plan to roll out 1.5 GW by 2026 and aiming to reach 7 GW by 2030. Could you comment on Singapore’s approach to increasing its share of renewable energy and on the recent investment from GIC (Singaporean Sovereign Wealth Fund)?
The government is aligned with our mission and sets impressive targets, particularly given such limited space, therefore requiring import from neighboring countries. Singapore is doing everything in its power to use all available space, already putting solar power on top of more than 3,000 buildings, including all government buildings. However, this will not suffice, so collaboration is key with neighboring countries such as Malaysia and Indonesia. The ASEAN interconnection grid is a win-win for all parties as Singapore benefits from the import of renewable energy, and its neighbors gain an economic benefit.
GIC, Singapore’s sovereign wealth fund, invested a billion euros in EDPR, making it the second largest shareholder after EDP. GIC’s financial prowess combined with EDPR’s strategic and operational capabilities forms a strong duo.