Keppel’s technology for largest waste-to-energy plant in China

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Latest two technology contracts reaffirm company’s market leadership

Keppel Seghers Belgium N.V. (Keppel Seghers), the environmental engineering arm of Keppel Integrated Engineering (KIE), has secured two contracts to supply waste-to-energy (WTE) solutions, totalling US$53 million (approximately S$74.2 million), in China.

The first contract, awarded by Shenzhen Energy Environmental Engineering Company Ltd, is for the expansion of an existing WTE plant in Shenzhen, Guangdong. When completed in 2011, the WTE plant will be the largest in China with an eventual capacity to treat 4,200 tonnes of municipal waste per day.

Keppel Seghers’ technology for the furnace, boiler and flue gas cleaning components will enable the facility to treat an additional 3,000 tonnes to the existing 1,200 tonnes of municipal waste per day. The existing WTE plant’s key components were also provided by Keppel Seghers in 1999.

Besides the contract, a Memorandum of Understanding (MOU) was signed between Keppel Corporation Limited and Shenzhen Energy Group Co., Ltd to explore areas of strategic partnerships related to environmental protection, including WTE projects.

Both the contract and the MOU were signed in the presence of Mr Wang Rong, Standing Committee Member of Communist Party of China (CPC) Guangdong Provincial Committee, Deputy Secretary of CPC Shenzhen Municipal Committee and Acting Mayor of Shenzhen.

Mr Michael Chia, Deputy Chairman of KIE, said, “We are honoured to mark our 10 years of collaboration with Shenzhen Energy with this landmark project as it will be the largest WTE plant in China when completed. Keppel’s strong track record to treat waste safely such that the emissions surpass stringent European Union standards makes our WTE solutions a compelling choice.”

The second contract, awarded by China Energy Conservation Investment Corporation (CECIC), is for the supply of technology for the furnace, boiler and flue gas cleaning components for a WTE plant in Chengdu. When completed in 2011, the plant will be able to treat 1,800 tonnes of municipal waste per day. CECIC, like Shenzhen Energy Environmental Engineering Company, is a repeat customer.

Mr Michael Chia added, “The two contracts from repeat customers affirm the quality and reliability of our WTE technology as an effective solution to waste management. The strength of our WTE technology will enable Keppel to gain further traction in the WTE market in China and the rest of the world.”

KIE is currently the market leader for imported WTE solutions in China, with 60% of the market share.

Last year, Keppel Seghers secured two WTE technology projects in China. In July 2009, Keppel Seghers secured an €11 million (approximately S$22.3 million) contract from Tianjin Binhai Environmental Industry Development Ltd to provide technology to a WTE plant in Hangu, Tianjin.

In March 2009, Keppel Seghers was also awarded a S$30 million contract by Riseland Holdings, a subsidiary of Everbright International to provide technology to a WTE plant in Jinan, Shandong.

The above-mentioned contracts and MOU are not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

About Keppel Integrated Engineering (KIE)

KIE is a wholly-owned subsidiary of Keppel Corporation Limited.

The Keppel Seghers group of companies (Keppel Seghers Group), which are owned by KIE, are leading providers of comprehensive environmental solutions ranging from consultancy, design and engineering, technology and construction to operations and maintenance of facilities. Its advanced technology solutions address a wide spectrum of environmental issues such as solid waste, wastewater, drinking & process water, biosolids & sludge. In addition, Keppel Seghers Group offers a full range of environmental-friendly industry applications for the removal of organic substances from metal parts and tools.

Keppel Seghers Group has an established track record of involvement in waste-to-energy (WTE) projects in Europe, the Americas and the Asia Pacific for more than 40 years.

In April 2009, Keppel Seghers also secured an Engineering, Procurement and Construction (EPC) contract worth approximately S$518 million to build an Energy-from-Waste Combined Heat and Power Plant (EFW CHP plant), featuring Keppel Seghers’ technology, to serve the Greater Manchester region in the United Kingdom.

Notably, in the Middle East, Keppel Seghers Group is implementing two contracts worth approximately S$1.7 billion by the Ministry of Municipality and Urban Planning of Qatar for the Engineering, Procurement and Construction (EPC) and Operation and Maintenance of an integrated solid waste management facility which can treat 2,300 tonnes of waste per day.

Currently, Keppel Seghers Group is the only private operator of WTE plants in Singapore. Owning and operating two out of four WTE plants in Singapore, Keppel Seghers Group has the capacity to treat almost half of Singapore’s waste that is sent for incineration.

For further information, please contact

Ang Lai Lee (Mr)
Assistant Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: +65 82339299

Source: Keppel Corporate Limited

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