Keppel saved $73m in 2021 from energy-efficient initiatives, aims to make sustainability its business

SINGAPORE - Going green has once again paid off for Keppel Group, with the firm reaping rewards from energy saving initiatives while taking steps to make sustainability its business.

Keppel's annual sustainability report out on Sunday (May 29) noted that these initiatives last year achieved an estimated $73 million or so in cost savings while also avoiding about 123,000 tonnes of carbon dioxide-equivalent in emissions.

Chief executive Loh Chin Hua told stakeholders: "As part of Keppel's Vision 2030, we have put sustainability at the core of the company's strategy.

"This includes both running our business sustainably and making sustainability our business through providing solutions that contribute to sustainable urbanisation and combating climate change."

Keppel appointed Mr Ho Tong Yen as its first chief sustainability officer earlier this year and signed agreements in April for the proposed combination of Keppel Offshore & Marine (O&M) and Sembcorp Marine.

"This brings together two leading offshore and marine companies to create a premier player, well positioned to address the challenges and opportunities in the evolving O&M sector and the energy transition," Mr Loh said.

"At the same time, we are expanding the group's presence in areas such as renewables, clean energy, decarbonisation, environmental solutions and sustainable urban renewal."

He added that Keppel is also exploring the import of renewable energy to Singapore, developing electric vehicle charging infrastructure and continuing to expand its district cooling services - all initiatives that can support Singapore's Green Plan 2030, a movement to advance the national agenda for sustainable development.

Mr Loh noted that Keppel is also making progress towards its target of growing its portfolio of renewable energy assets to 7 gigawatts by 2030.

At the end of last year, it announced renewables projects with a total capacity of 1.1 gigawatts, which includes it acquiring a majority stake in solar energy platform Cleantech Renewable Assets.

Keppel is also studying other low-carbon solutions, including carbon capture and developing new energy value chains such as green ammonia and hydrogen, to meet the burgeoning global demand for clean energy, Mr Loh said.

It is exploring greener solutions in urban and infrastructure development as well, such as energy-efficient floating data centre parks and "floating cities", which are climate-resilient urban developments near the shore.

Significantly, two waste-to-energy plants operated by Keppel here contributed to about 3,741,000 tonnes of carbon dioxide-equivalent in net avoided emissions, the report said.

The plants prevent organic waste from decomposing over the long term and reduce methane emissions as compared with the emissions that can arise from traditional landfills.

The plants at Senoko and Tuas also generate electricity.

"Beyond avoided emissions, Keppel Infrastructure is looking into how it can provide further treatment to extract heavy metals and pollutants from incineration fly ash and bottom ash, allowing the ash to be further reused instead of being landfilled," the report said.

Besides environmental efforts, Keppel also strengthened its corporate governance, achieving a zero-fatality target last year across global operations, while improving in terms of its accident frequency rates, among others.

Mr Loh said: "We have always seen sustainability not as a cost, or just through the lens of corporate social responsibility, but also as a source of business opportunities.

"With growing international momentum around climate action... we see many opportunities in these growth areas, where the group has strong capabilities... and where we can work with our partners and customers to contribute to a cleaner and greener world."