Sembcorp unit inks second power purchase agreement with Equinix

SEMBCORP Industries’ wholly owned subsidiary, Sembcorp Power, has signed a second long-term power purchase agreement with Equinix, a US-based data-centre firm.

Under the agreement, Sembcorp Power will supply Equinix a maximum capacity of 58.5 megawatt-peak (MWp) from its renewable energy portfolio for up to 15 years, starting in 2029.

This follows an earlier agreement signed with Equinix in April this year, said Sembcorp on Tuesday (Dec 3). As part of that pact, Sembcorp Power will provide Equinix with a maximum capacity of 75 MWp from its renewable energy portfolio for up to 18 years.

The power supply will be sourced from Sembcorp’s solar assets. The renewable energy deal will be sourced from the Housing and Development Board’s (HDB) SolarNova 7 programme and supply energy from solar panels installed across 1,290 HDB blocks and 99 government sites.

Equinix had said that the first agreement is expected to contribute more than three million megawatt-hours of renewable energy annually to local grids across the United States, Australia, France, Finland, Portugal, Spain, Sweden and Singapore once operational.

Following the latest signing, Sembcorp’s total contracted renewable energy capacity with Equinix stands at 133.5 MWp.

Sembcorp noted that the signing of the agreement is in the ordinary course of business.

It is, thus, not expected to have a material impact on its earnings per share and net tangible assets per share for the financial year ending Dec 31, 2024, said the group.

Shares of Sembcorp closed 1.2 per cent or S$0.06 higher at S$5.28 on Monday.