Sabana Real Estate Investment Management Pte. Ltd., the Manager of Sabana Industrial Real Estate Investment Trust (Sabana Industrial REIT), announces that Sabana Industrial REIT has entered into agreements with Keppel EaaS, a wholly owned subsidiary of Keppel Infrastructure, to implement sustainability solutions and initiatives across the REIT’s selected portfolio properties.
The REIT will also be partnering with Keppel EaaS to install Solar PVs across four of the REIT’s properties at 10 Changi South Street 2, 34 Penjuru Lane, 3A Joo Koon Circle, and 1 Tuas Avenue 4. The target completion for 10 Changi South Street 2, 34 Penjuru Lane, and 3A Joo Koon Circle will be by the end of 3Q 2023, and 1H 2024 for 1 Tuas Avenue 4.
The Solar PVs, which are to be deployed and maintained by Keppel EaaS, will have an installed capacity of 4.7 Megawatt peak and are able to collectively produce over 5,700 Megawatt hours per year, sufficient to power over 1,700 3-room HDB flats for a year. This is expected to reduce over 43,000 tonnes of carbon emissions over the project lifecycle of approximately 25 years for the four properties, equivalent to the carbon abatement of planting 30,000 trees. Furthermore, the Solar PVs will also enable the REIT to benefit from lower energy consumption.
In addition, Sabana Industrial REIT and Keppel EaaS also signed a Sustainability Partnership MoU. Under the terms of the MoU, the REIT will leverage Keppel EaaS’s Energy-as-a-Service (EaaS) to work towards becoming one of Singapore’s first Carbon Neutral Industrial REITs by 2040.
As part of EaaS, the possible implementation of smart cooling with zero upfront capital expenditure is one such initiative under study by Keppel EaaS for selected REIT portfolio properties to reduce energy consumption and maintenance costs for the REIT.
This also includes the installation and operation of energy-efficient chiller systems, renewable energy certificates, and green electricity supply over the long term with Keppel EaaS serving as the one-stop solutions provider. As such, its customers enjoy long-term energy savings as well as carbon emissions reduction.
Mr. Donald Han, Chief Executive Officer of the Manager of Sabana Industrial REIT, explained, “We are committed to doing our part in reducing the carbon footprint in Singapore and contributing to sustainable development. We have taken tangible steps to align our business objectives with sustainability by integrating green initiatives across selected portfolio assets such as our ongoing energy and water reduction initiatives. We are pleased to partner with Keppel EaaS in our journey as we intensify our sustainability efforts with the implementation of electric vehicle charging stations at New Tech Park and the planned installation of solar panels at the REIT’s selected assets. Through this partnership with Keppel EaaS, the REIT will not incur capital expenditure outlay for the solar panel installation, and in addition, the REIT will benefit from potential cost savings as solar energy consumed is charged at a preferential rate.”
Mr. Lim Yong Wei, General Manager of Keppel EaaS said, “We are pleased to partner with Sabana Industrial REIT in their sustainability journey through the agreements and look forward to working closely with them to make carbon neutrality a reality for the REIT. We are also heartened that our EaaS solution which offers businesses a road to carbon neutrality with zero upfront capital investment resonates strongly with our customers. We are looking at scaling Keppel’s EaaS solution rapidly in Singapore and are in talks with players across the region to implement this overseas as well.”
The contracts and MoU firmly support the commitment by the REIT and Keppel to embed sustainability into their business operations and are also aligned with Singapore Green Plan 2030.
