Sembcorp launches renewable energy certificate aggregator platform

Sembcorp said the platform will allow individual consumers to monetise their renewable energy certificates.
Sembcorp said the platform will allow individual consumers to monetise their renewable energy certificates.PHOTO: SEMBCORP INDUSTRIES LTD

SINGAPORE (THE BUSINESS TIMES) - Sembcorp Industries has launched a renewable energy certificate (REC) aggregator platform backed by its renewable power capacity in China and South-east Asia, the conglomerate said on Tuesday (April 14).

RECs are tradable certificates or proofs of electricity generated by renewable sources.

The platform puts RECs up for sale in bulk, combining Sembcorp's RECs with RECs from different sources. The group's own RECs will help ensure high liquidity on the platform, it said.

Sellers are guaranteed a sale of their RECs, regardless of quantity, as long as the RECs meet the authenticity criteria of Sembcorp's platform, Sembcorp said.

The platform utilises blockchain technology, which ensures transparency, integrity and better security for transactions, while the quality of RECs is verified by third-party validators, the group added.

Swiss bank UBS and mainboard-listed property giant CapitaLand have signed on as participants.

Sembcorp said the platform is useful for companies that are part of RE100, a global renewable energy campaign in which firms pledge to use 100 per cent renewable energy by a certain date.

The platform will also allow individual consumers to monetise their RECs.

An upcoming feature will allow producers of renewable energy to install smart meters and link them to the platform to generate RECs directly, Sembcorp said.

Separately, Sembcorp will redeem its entire $600 million 4.75 per cent subordinated, unsecured perpetual securities on May 20, the first call date.

In a filing on Monday evening, the conglomerate gave notice that it is electing to redeem all, and not some only, of the perps at the redemption amount - which is at par value - together with distribution accrued to May 20.

Upon redemption, the $600 million perps will be cancelled and delisted from the Singapore Exchange. They had been issued in 2015 at par, under Sembcorp's S$2.5 billion multicurrency debt issuance programme.

Sembcorp shares closed down $0.02 or 1.3 per cent to $1.56 on Monday.