Sabana Industrial REIT M1GU has entered into agreements with Keppel Energy-as-a-Service (EaaS), a wholly owned subsidiary of Keppel Infrastructure, to implement electric vehicle (EV) charging and solar photovoltaic cells (PVs) in the REIT’s properties.
Under the initial phase, four Volt EV charging stations will be installed at the REIT’s property at 151 Lorong Chuan, also known as New Tech Park.
The charging stations, which will be open to tenants and the public, are targeted for completion within 1H2023, according to a joint press release on March 30.
Keppel EaaS will also install solar PVs across four of Sabana REIT’s properties: 10 Changi South Street 2, 34 Penjuru Lane, 3A Joo Koon Circle and 1 Tuas Avenue 4. The target completion for the former three properties will be by end 3Q2023, while the latter project will be complete around 1H2024.
The solar PVs, which will be deployed and maintained by Keppel EaaS, will have an installed capacity of 4.7 megawatt peak (MWp) and are able to collectively produce over 5,700 megawatt hours (MWh) per year, sufficient to power over 1,700 three-room HDB flats for a year.
This is expected to reduce over 43,000 tonnes of emissions over the project lifecycle of approximately 25 years for the four properties, equivalent to the carbon abatement of planting 30,000 trees, say the two companies. “The solar PVs will also enable the REIT to benefit from lower energy consumption.”
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In addition, Sabana Industrial REIT and Keppel EaaS have signed a sustainability partnership memorandum of understanding (MOU).
Under the MOU, the REIT will leverage Keppel EaaS to work towards becoming one of Singapore’s first carbon-neutral industrial REITs by 2040.
This may include the “possible implementation of smart cooling with zero upfront capital expenditure” to reduce energy consumption and maintenance cost for the REIT. This also includes the installation and operation of energy-efficient chiller systems, renewable energy certificates and green electricity supply over the long term, with Keppel EaaS serving as the one-stop solutions provider.
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Donald Han, chief executive officer of the manager of Sabana Industrial REIT, says: “We are pleased to partner Keppel EaaS in our journey as we intensify our sustainability efforts with the implementation of electric vehicle charging stations at New Tech Park and the planned installation of solar panels at the REIT’s selected assets. Through this partnership with Keppel EaaS, the REIT will not incur capital expenditure outlay for the solar panel installation, and in addition, the REIT will benefit from potential cost savings as solar energy consumed are charged at a preferential rate.”
Lim Yong Wei, general manager of Keppel EaaS, says: “We are pleased to partner Sabana Industrial REIT in their sustainability journey through the agreements and look forward to working closely with them to make carbon neutrality a reality for the REIT. We are also heartened that our EaaS solution which offers businesses a road to carbon neutrality with zero upfront capital investment resonates strongly with our customers. We are looking at scaling Keppel’s EaaS solution rapidly in Singapore and are in talks with players across the region to implement this overseas as well.”
The abovementioned developments are not expected to have any material impact on the distribution per unit and net asset value per unit of Sabana Industrial REIT or Keppel Corporation Limited BN4 , the parent company of Keppel Infrastructure, for the current financial year.
Units in Sabana Industrial REIT closed 1 cent lower, or 2.25% down, at 44 cents on March 30; while shares of Keppel Corporation closed 6 cents higher, or 1.08% up, at $5.62.
