Keppel consortium buys rest of solar platform from Shell Singapore for undisclosed sum
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Keppel hopes to work closely with the solar platform, Cleantech Renewable Assets, to grow its renewables business.
PHOTO: LIANHE ZAOBAO FILE
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SINGAPORE - A consortium comprising global asset manager Keppel, Keppel Asia Infrastructure Fund and a co-investor, has bought the remaining 49 per cent stake in Cleantech Renewable Assets (CRA) that it does not yet own from Shell Singapore.
The consideration for the acquisition was not disclosed.
Keppel said on Nov 4 that the purchase brings the consortium’s stake in CRA – a Singapore-headquartered solar energy platform – to 100 per cent, and aligns with its goal to grow its renewables business and expand its footprint as a global asset manager and operator that creates sustainable solutions.
“Having full ownership of Cleantech will strengthen our ability both as a key investor and general partner to drive performance, accelerate decision-making as well as augment Keppel’s ability to create greater value from a proven and scalable renewable energy platform,” said Mr Jopy Chiang, deputy chief investment officer (CIO) and CIO for infrastructure at Keppel.
He added that Keppel hopes to work closely with CRA’s management team to unlock “new growth opportunities” and advance its strategic focus on renewables, clean energy and decarbonisation.
Keppel noted that CRA has “more than doubled” its solar portfolio to a total capacity of around 1.1 gigawatts across various stages of operations since the consortium acquired a majority 51 per cent stake in it back in October 2022.
Moreover, the solar platform, which focuses on the commercial and industrial (C&I) segment and holds assets across India and South-east Asia, aims to grow its portfolio by an additional 1 GW of solar assets by end-2026, Keppel added.
The asset manager noted that the acquisition comes at a “pivotal time” for the clean energy landscapes of South-east Asia and India, both of which are undergoing “rapid transformation” fuelled by national sustainability goals and “positive market economics”.
This comes as developments in CRA’s target markets present a “favourable landscape” for the solar platform to position itself for growth, Keppel said.
Citing data from the International Energy Agency, it noted that South-east Asia’s solar sector is one of the most cost-competitive options for new electricity generation.
Meanwhile, India is targeting to achieve 500 GW of renewable capacity by 2030 and C&I renewables are projected to grow at a compound annual growth rate of around 23 per cent through 2027, it added.
Keppel said the transaction is not expected to have material impact on its earnings per share and net tangible asset per share for the current financial year.
Keppel shares were down 0.5 per cent at $10.19 as at 9.08am on Nov 4, after the announcement. THE BUSINESS TIMES
