Keppel Corporation and HSBC have signed a memorandum of understanding (MOU) to explore opportunities to collaborate on decarbonisation solutions, announced the two parties on July 25.
Keppel, through its infrastructure division, will work with HSBC to jointly develop a “strategic collaboration framework” to capture market demand for decarbonisation and sustainability solutions in dense urban cities in the Greater Bay Area (GBA), such as Guangzhou, Shenzhen and Hong Kong, and across Asia.
According to both parties, Asia requires massive financing and investment for sustainable projects, with green financing needs in Asia alone projected to reach some US$66 trillion ($87.81 trillion) in the next three decades.
The collaboration will leverage Hong Kong’s green finance and technology expertise to support the acceleration of the region’s energy transition efforts, say the two parties.
Keppel is currently supporting Hong Kong with its first integrated waste management facility (IWMF) for municipal solid waste. In 2017, Keppel and Zhen Hua Engineering were awarded a contract by the Hong Kong government to design, build and operate an IWMF off the coast of Shek Kwu Chau.
The IWMF will utilise Keppel’s proprietary technology with its air-cooled grate, boiler design and advanced combustion control system, as well as the Keppel Seghers Flue Gas Cleaning System.
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When completed, Keppel will operate and maintain the IWMF for 15 years. The facility will not only reduce the total volume of waste directed toward Hong Kong’s landfills, it will also export about 480 million kilowatt-hours of electricity per year.
The MOU was signed on July 24 by Cindy Lim, chief executive officer, infrastructure division, Keppel; and Luanne Lim, chief executive, Hong Kong, HSBC.
The signing was witnessed by Singapore’s Deputy Prime Minister Heng Swee Keat and John Lee, chief executive of Hong Kong SAR, at a high-level event hosted in Singapore by the Hong Kong government for the business communities of both cities.
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Keppel’s sustainability solutions are differentiated by its proprietary technologies and operating know-how, says Lim. “We are pleased to partner HSBC to tailor energy-as-a-service offerings, coupled with sustainable financing solutions, to accelerate the greening of the built environment, transportation and waste management, from Hong Kong to the Greater Bay Area and to the rest of Asia.”
Keppel announced on May 3 a major reorganisation, arranging its various operations into three broad divisions: infrastructure, real estate and connectivity.
These are now subsumed under Keppel operating platform, which runs parallel to Keppel’s fund management platform and investment platform.
As at 9.39 am, shares in Keppel Corporation are trading 13 cents higher, or 1.93% up, at $6.85.
