KEPPEL Infrastructure Holdings, through its unit Keppel EaaS in Thailand (KET), has entered into a joint venture (JV) with Combined Heat and Power Producing (CHPP) for the provision of comprehensive energy-as-a-service (EaaS) within the cooling sector in Thailand.
This includes the design, installation, operation and maintenance of cooling systems within the country.
CHPP is a wholly owned subsidiary of electric power distribution company Global Power Synergy Public Company (GPCS).
KET will pay 490,000 baht (S$18,451) for 49 per cent interest in the JV, and Thailand-based CHPP will purchase the remaining 51 per cent for 510,000 baht.
The amounts will be payable in cash on completion of the subscription.
The initial share capital of the JV – and of KET’s and CHPP’s subscription amounts – were arrived at after taking into account the initial working capital requirements.
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Cindy Lim, CEO of Keppel’s infrastructure division, said that Thailand’s Energy Efficiency Plan 2018-2037 is a central component of the country’s energy policy, which aims to reduce its energy intensity by 30 per cent by 2037, compared with 2010 levels.
“In addition, Thailand’s Energy Conservation Promotion Act mandates that large energy consumers, such as industrial facilities and buildings, must conduct energy audits, implement energy-saving measures, and report their energy usage to the government,” she said.
“In light of this, we see a rapidly growing addressable market for our EaaS solutions in Thailand in the coming years.”
Worawat Pitayasiri, CEO of GPSC, added: “By combining our strengths, we aim to deliver high-quality district cooling services that support Thailand’s green energy transition.”
None of the directors and controlling shareholders of the parent company, Keppel, has any interest in the transactions, other than through their shareholding interests in the company.
The above transaction is not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel for the current financial year.
Since launching its EaaS solution in late 2021, Keppel has been gaining market traction with several deals signed. Among them include US$70 million worth of contracts inked with Vietnam late last year.
It was also awarded a contract by the Urban Redevelopment Authority to design, build, own and operate a new large-scale district cooling system plant for 30 years located in the Jurong Lake District.
