SINGAPORE - Sembcorp Industries and UBS have signed a long-term solar energy deal which will see the local comglomerate supplying renewable power to support the bank's Singapore operations over the next 10 years.
This will be done through the sale of all surplus power generated by over 15,000 offsite rooftop solar panels totalling 6.3 megawatt-peak in capacity - which has been bought exclusively by UBS.
These panels will be installed on top of a 40,000 square metre exhibition hall in Singapore by December 2019, Sembcorp said in a regulatory update on Thursday.
The partnership will set out to run 25 per cent of UBS's annual consumption across all its Singapore offices, replacing some 20 million kilogrammes of carbon emissions in 10 years. By 2020, the bank is planning to have its entire Singapore operations run fully on renewable energy.
Koh Chiap Khiong, Sembcorp's head of Singapore, South-east Asia and China (Energy), said that with the UBS deal, the group is pleased to have its first renewable energy partner in the financial industry.
UBS Singapore's country head August Hatecke, added: "As a global firm, UBS strives to go beyond our duty to protect the environment and continually improve our systems to ensure responsible behaviour in all aspects of our operations," Mr Hatecke said.
The move comes months after UBS announced plans in April to bring together its Singapore-based businesses to a new UBS office campus. This is a prime property at 9 Penang Road featuring customised health and well-being facilities as well as innovative future workplace concepts.
This hub will be supported by the bank's tech and operations hub in Changi, both of which will be powered by renewable energy.
Sembcorp said the contract is not expected to have a material impact on the group's earnings per share and net asset value for the financial year ending Dec 31, 2019.
Sembcorp shares closed at $2.21 on Wednesday, up six cents or 2.8 per cent.