Keppel’s infrastructure division has signed a non-binding memorandum of understanding (MOU) with the Japan Bank for International Cooperation (JBIC) to establish a clean energy supply chain in Asia that will help to advance the energy transition and promote sustainable digitalisation in the region.
In a March 25 announcement, Keppel says both parties seek to cooperate in areas such as renewable energy, transmission lines for energy trade, hydrogen, ammonia, data centres and subsea cables in Asia.
The partnership will also make available “potential financing” for Keppel’s ongoing projects in electricity imports and low-carbon energy.
The MOU was signed in Singapore on March 25 by Chua Yong Hwee, managing director of the wholly-owned subsidiary Keppel Energy Nexus under Keppel’s infrastructure division; and Atsuki Shibuya, deputy director general, director of division 2, new energy and power finance department II, JBIC.
The signing was witnessed by Loh Chin Hua, CEO of Keppel; Cindy Lim, CEO of Keppel’s infrastructure division; Tadashi Maeda, chairman of JBIC; and Kazuko Sakuma, resident executive officer, regional head for Asia and Pacific, JBIC.
Chua says the partnership with JBIC marks an “important step forward” in advancing Asia’s journey towards a low-carbon future. “By combining Keppel’s deep expertise in sustainability and digital infrastructure, with JBIC’s financial strengths and the advanced technology of Japanese enterprises, we are well-positioned to build a robust energy supply chain together, setting new standards for sustainable development in Asia while generating value for our stakeholders.”
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JBIC is a Japanese public financial institution and export credit agency created in 1999 through the merger of the Japan Export-Import Bank (JEXIM) and the Overseas Economic Cooperation Fund (OECF). It is wholly owned by the Japanese government.
The MOU is not expected to have any material impact on Keppel’s earnings per share or net tangible assets per share for the current financial year.
As at 5pm, Keppel shares are trading 5 cents higher, or 0.73% up, at $6.92.
