Singapore Airlines (SIA) and SIA Engineering Company (SIAEC) have signed a power purchase agreement with Sembcorp Solar, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), to install and operate rooftop solar panels on their premises.

The solar panels will help to power onsite operations at various locations, with surplus power generated channelled to Singapore and Changi Airport Group’s electrical grids. This arrangement reinforces the SIA Group’s commitment towards renewable energy sources and more sustainable operations.

Under the agreement, Sembcorp Solar will install, own and operate over 20,000 solar panels. The panels will be installed at SIA’s Airline House, SIA Training Centre, TechSQ, five of SIAEC’s hangars and its Engine Test Facility. With a total capacity of 8.2 megawatt-peak (MWp), this will be the largest combined solar-power energy project for the aviation industry in Singapore.

Upon completion in June 2020, the project is expected to produce over 10,200 megawatt hours of power annually. This is enough renewable energy to power more than 2,290 four-room HDB flats for a year. It will also help offset over 4.3 million kilogrammes of carbon dioxide emissions a year, equivalent to taking approximately 930 cars off the road or planting over 52,000 trees.

The move to harness green energy complements SIA’s goal to reduce 15 per cent of its electricity consumption in its offices by FY2020/21 as well as SIAEC’s goal to reduce 15 per cent of its energy consumption by FY2023/24 (compared to base year FY2013/14).

SIA Senior Vice President of Corporate Planning, Lee Wen Fen, said, “Sustainability is a key focus area for the SIA Group. We have been increasing our use of renewable energy sources, and this is one example of how we will continue to invest in the technologies and resources to meet our sustainability goals.”

The adoption of solar energy is one part of the SIA Group’s ongoing efforts to reduce its carbon footprint. These include its major investment in modern aircraft that have significantly reduced the average age of its fleet, and resulted in greater fuel efficiency and lower carbon emissions than previous generation planes. SIA has also embarked on its “Farm to Plane” initiative, which supports local farming communities and uses sustainable ingredients for in-flight meals, and is taking steps to reduce the amount of single-use plastics on board aircraft.

SIAEC Executive Vice President Operations, Ivan Neo, said, “SIAEC is pleased to partner SIA and Sembcorp in the adoption of clean and renewable solar energy to reduce our carbon footprint. Tapping on solar energy to power our offices and hangars is a natural extension of our environmental protection efforts, where we are already using energy-efficient air conditioning systems and energy-friendly LED lighting systems in our operations. This latest move underscores SIAEC’s commitment to playing a part in combating climate change.”

Jen Tan, Senior Vice President, Sembcorp Solar Singapore & SEA (Energy Division), said, “We are pleased to be SIA and SIAEC’s green energy partner, supporting them in their sustainability efforts. With this deal, we are pleased to have onboard our largest renewable energy partner in the aviation industry, and we are fully ready to support their growing need for green energy.”

Sembcorp is a homegrown Singapore energy player, and has been part of the Singapore power industry for over two decades. It is the only established power gentailer (generation-affiliated retailer) in Singapore to offer renewable energy. With this new contract as well as national water agency PUB’s recent appointment of Sembcorp as the preferred bidder for a 60MWp floating solar project, Sembcorp will be one of the largest renewable energy players in Singapore with approximately 250MWp of capacity in operation and under development.

Sembcorp has been continually stepping up its commitment to sustainability. Today, its growing renewable energy business has over 2,600 megawatts of wind and solar power projects internationally. In 2018, the company unveiled their Climate Change Strategy, outlining ambitious targets to double its global renewables portfolio and reduce its greenhouse gas emissions intensity by approximately 22% by 2022.

This contract is not expected to have a material impact on the earnings per share and net asset per share of Sembcorp for the financial year ending December 31, 2020, and of SIA and SIAEC for the financial year ending March 31, 2020.

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