Keppel inks MOU with Sojitz to pursue clean energy business ventures in Asia-Pacific

GLOBAL asset manager Keppel, through its infrastructure division, on Thursday (Jul 18) signed a memorandum of understanding (MOU) with Tokyo-based investment and general trading company Sojitz, to pursue decarbonisation and clean energy business opportunities in the Asia-Pacific.

Both companies will identify and develop projects in bioenergy and resource recovery, as well as invest in and operate energy solutions that support energy transition in the region.

The tie-up aims to tap Keppel’s Energy-as-a-Service (EaaS) expertise and proprietary solutions for businesses in markets where Sojitz operates.

Sojitz, which is listed on the Tokyo Stock Exchange, has operating bases across Asia, Europe, the Middle East and the Americas. Its group of companies include about 400 subsidiaries and affiliates globally.

Keppel launched the EaaS solution in late 2021, and has since secured contracts for its services in Singapore and abroad. 

This includes a contract – awarded by the Urban Redevelopment Authority – for a district cooling system at Jurong Lake District, and another to improve chilled water systems at a shopping mall and hotel in Bangkok, Thailand.

Cindy Lim, chief executive officer of Keppel’s infrastructure division, said that the partnership combined its expertise with Sojitz’s international presence.

“This collaboration showcases how like-minded businesses can expand reach and drive growth together,” she said. 

Keppel said that the partnership is not expected to have any material impact on its net tangible asset per share or earnings per share for the current financial year. 

The counter was trading 0.3 per cent or S$0.02 lower at S$6.68, as at 1.38 pm on Thursday, after the announcement.