Sembcorp Industries and Cache Logistics Trust said on Wednesday that they signed a solar-power agreement to install and operate rooftop solar farms at three of Cache’s logistics warehouses in Singapore.
Under the deal, Sembcorp will install, own and operate rooftop solar panels with a combined capacity of around 7.9 megawatts, located on Cache’s Commodity Hub, Pandan Logistics Hub and Cache Changi Districentre 1, the two companies said in a filing to SGX after the market close on Wednesday.
The system is expected to be fully installed in mid-2019 and it is expected to produce more than 9,400 megawatt hours of power annually, which was estimated as enough to power more than 2,000 four-room public housing flats for a year, the filing said.
Upon completion, Commodity Hub will have Singapore’s largest rooftop solar facility so far, with a peak capacity of around 6.2 megawatts, it said.
Koh Chiap Khiong, head of Singapore, Southeast Asia and China for energy at Sembcorp, noted the project would help Singapore reach its environmental goals.
“This new project will not only grow Sembcorp’s solar portfolio in Singapore with the installation of over 20,000 solar panels, but also help Cache reduce its carbon footprint,” Koh said in the statement. “It will also generate renewable energy for the grid and avoid over four million kilograms of carbon dioxide, supporting Singapore’s environmental goals and helping to meet the nation’s target of 350 megawatts peak solar power capacity by 2020.”
Daniel Cerf, CEO of ARA Trust Management (Cache), the manager of Cache Logistics Trust, said that the project would lessen the trust’s conventional energy consumption and lower its operating costs as well as using its under-utilized rooftop space.
“We will continue to review other properties within our portfolio to implement similar energy efficient initiatives in the interest of achieving greater environmental sustainability,” Cerf said in the statement.
Sembcorp currently has more than 120 megawatts peak of solar project capacity in Singapore either under development or in operation, it said. It also has 2,600 megawatts of wind and solar projects across China and India as well, it said.
Cache’s portfolio comprises 27 logistics warehouse properties across Singapore, Australia and China, it said.