Keppel inks electricity supply deal with chipmaker GlobalFoundries

BENGALURU - Global asset manager Keppel’s infrastructure unit will supply electricity to the Singapore operations of the US-based contract chipmaker GlobalFoundries under a multi-year power purchase agreement, the companies said on Jan 9.

Under the agreement, which is set to commence in May, Keppel will supply 150 megawatts to 180 megawatts of electricity each year at GlobalFoundries’ Singapore site.

GlobalFoundries is also expected to be a long-term buyer of electricity from the Keppel Sakra Cogen Plant (KSC), which the Singapore-based firm is developing with Japan’s Mitsubishi Power and local engineering company Jurong Engineering.

“GlobalFoundries is expected to contract about 25 per cent of KSC’s total generation capacity for more than 15 years when the plant is operational,” the companies said.

With electricity from KSC, which is set to be completed in 2026, GlobalFoundries is eyeing to cut up to 70,000 tonnes of carbon dioxide emissions annually from its Singapore site.

“With ability to use hydrogen as part of its feedstock, it is expected that KSC will be able to provide GlobalFoundries with a resilient source of even lower carbon power in future,” the companies said.

The chipmaker also has the option to switch a part of the power supplied by Keppel to renewable energy such as wind and solar as it aims first to reduce its total greenhouse gas emissions by 25 per cent by 2030.

Nasdaq-listed GlobalFoundries, which competes with Taiwan’s TSMC and South Korea’s Samsung Electronics among others, last September opened a US$4 billion (S$5.32 billion) semiconductor fabrication plant in Singapore as part of a large global expansion.

Its Singapore operations serve 200 clients worldwide, with the chips being used in cars and 5G technology.

REUTERS