A Keppel Corp unit and a partner have won a HK$31 billion (S$5.36 billion) contract to design, build and operate a waste management facility in Hong Kong.
The facility will be built off the coast of Shek Kwu Chau and south of Lantau Island.
The work will be carried out by Keppel Seghers Hong Kong, a unit of Keppel Infrastructure Holdings, and Zhen Hua Engineering, a wholly owned unit of China Harbour Engineering Company. It is expected to be completed by 2024.
As a key part of Hong Kong's waste management strategy, the facility will be able to reduce the total volume of waste treated by more than 90 per cent.
This will in turn extend the lifespan of landfills, where Hong Kong disposes non-recycled waste.
The facility comprises a waste-to-energy plant, a mechanical treatment plant and ancillary facilities, including an administration building, visitor centre, port handling facilities, as well as desalination and wastewater treatment plants.
It will treat about 3,000 tonnes a day of mixed municipal solid waste and feature Keppel Seghers' waste-to-energy technology.
In addition, the waste-to-energy plant will also use Keppel Seghers' flue gas cleaning system, ensuring that the plant's emissions will comply with Hong Kong and European Union standards, which are said to be among the most stringent international standards available.
Keppel Infrastructure is a wholly owned subsidiary of Keppel Corporation.
The contract is not expected to have any significant impact on the earnings per share and net tangible asset per share of Keppel Corp for this financial year.