Sembcorp Signs Deal with Singapore Airlines to Install Over 20,000 Solar Panels

The total capacity of the solar project is 8.2 MW

February 20, 2020


Sembcorp Solar, a wholly-owned subsidiary of Sembcorp Industries, has signed a power purchase agreement with Singapore Airlines (SIA) and SIA Engineering Company (SIAEC) to install, own, and operate over 20,000 solar panels.

With a total capacity of 8.2 MW, it will be the largest combined solar-power energy project for the aviation sector in Singapore. According to the company’s statement, the solar panels will help to power onsite operations at various locations with surplus power generated channeled to Singapore and Changi Airport Group’s electrical grids.

The panels will be installed at SIA’s Airline House, SIA Training Centre, TechSQ, five of SIAEC’s hangars, and its engine test facility.  As per the company, the project is scheduled to be completed in June 2020 and is expected to produce over 10,200 MWh of power annually.

“This is enough renewable energy to power more than 2,290 four-room housing and development board (HDB) flats for a year. It will also help offset over 4.3 million kgs of carbon dioxide emissions a year, equivalent to taking approximately 930 cars off the road or planting over 52,000 trees,” states the company.

SIA’s 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.”

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 onboard aircraft.

SIAEC Executive Vice President Operations, Ivan Neo, said, “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.”

The company adds that the 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 fiscal year ending March 31, 2020.

Sembcorp is a homegrown Singapore energy player, and its renewable energy portfolio consists of over 2,600 MW of wind and solar power projects internationally.

In December 2019, Mercom reported that Sembcorp Industries announced that it was set to acquire the remaining 5.95% stake in its Indian arm, Sembcorp Energy Ltd., for ₹4,060 million ($56.9 million).

Earlier, it was reported that Emirates Flight Catering announced that it commissioned a solar power system at its premises. Under the project, 8,112 solar panels were installed. These solar projects cover eight of its flight catering facilities. It is expected to generate 4,195 MWh of electricity annually, allowing the company to reduce traditional energy consumption by 15% across its laundry, food manufacturing, and staff accommodation facilities.