Sembcorp Industries said on Friday that it completed its equity injection of A$5 million, or around S$5 million, into Vellocet Clean Energy (VCE), taking a 77.83 percent stake of the company’s enlarged share capital, through Sembcorp Energy Australia.
VCE provides clean energy services to businesses in Australia, specializing in developing behind-the-meter embedded generation and microgrids for large energy consumers, and mid-sized front-of-meter power supply and generation, it said in a filing to SGX on Friday.
“The investment establishes an important beachhead in Australia for Sembcorp to grow in the country’s power market, particularly in the direct supply of renewable energy to companies at a time when the potential retirement of older coal-fired facilities is creating a significant opportunity for the growth of cleaner energy solutions,” Sembcorp said in the statement.
“This deal is also part of Sembcorp’s strategy to support a low-carbon future as the company repositions itself to capitalise on growth
opportunities from the global energy transition,” it added.
Sembcorp is aiming to increase its total renewables generation capacity to around 4,000 megawatts by 2022, Tan Cheng Guan, head of renewables and the environment at Sembcorp, said in the statement.
“We believe that VCE’s capabilities in direct supply of renewable energy, coupled with Sembcorp’s strength and expertise in integrated energy solutions, will position us for accelerated growth going forward,” Tan said.
The equity injection wasn’t expected to have a material impact on Sembcorp’s earnings per share and net asset value per share in the current financial year, it said.
The planned deal was announced in early July, it noted.