Keppel expands energy-as-a-service presence in Vietnam

Singapore-headquartered conglomerate Keppel has reached an in-principle agreement with local firm KDI Holdings for the former to provide energy-as-a-service (EaaS) solutions to Libera Nha Trang, a major real estate complex in Vietnam's central province of Khanh Hoa.

Libera Nha Trang is a mixed-use development, with office, retail and residential spaces, and a substantial hotel component with around 3,000 rooms in Nha Trang town, a major tourism hub in Khanh Hoa, Keppel said in a Monday statement.

Under the agreement, Keppel and KDI Holdings will work to finalize a long-term agreement worth approximately SGD128 million ($95.2 million) for phase one of Libera Nha Trang.

This will encompass 15.6 hectares with over 23 hectares of gross floor area (GFA). Subject to finalization of the agreement, Keppel expects to commence its provision of cooling-as-a-service to Libera Nha Trang by end-2024.

Separately, Keppel has commenced cooling service operations for a prime commercial development in District 1, Ho Chi Minh City, starting last month. As part of the EaaS solution deployed there, Keppel is providing energy efficient cooling for over 13 hectares of GFA and is expected to achieve over 2,600 tons of carbon dioxide equivalent of carbon abatement annually.

Both projects will be monitored by Keppel’s Operations Nerve Center in Vietnam, powered by its proprietary algorithm. Keppel will be able to remotely monitor and optimize all energy assets in Vietnam in real-time, leveraging digital technology, artificial intelligence and machine learning.

This significantly enhances the efficiency, reliability and scalability of Keppel’s EaaS solutions, delivering superior sustainability performance and economic value to its customers and users.

Ton That Minh Quan, director of Keppel EaaS Vietnam at Keppel’s infrastructure division, said: "We are excited to expand Keppel’s EaaS solutions in Vietnam, which are increasingly sought after as companies look to decarbonize their operations.

"With our established track record and innovative solutions, Keppel is well-placed to capture these opportunities arising from Vietnam’s net zero goals. The new project and the commencement of cooling operations mark an important milestone in Keppel’s EaaS expansion and track record in Asia."

Do Tuan Anh, vice president of KDI Holdings, said: "Throughout a journey of more than a decade of development, KDI Holdings has always aimed for sustainable development in all business areas of the group. Especially in the real estate sector, we believe that partnering with Keppel, a corporation with extensive experience, will bring smart energy solutions to create a comprehensive green urban area and promote sustainable development in Libera Nha Trang."

Including the Libera Nha Trang project, Keppel’s infrastructure division has secured nearly SGD290 million ($215.7 million) worth of EaaS contracts in Vietnam and is set to deliver close to 15,300 refrigeration tons of cooling capacity under management in Vietnam.

These achievements encompass recent secured contracts for Republic Plaza Holiday Inn, Republic Suites, and a prime commercial development in District 1, HCMC.

Keppel’s EaaS solution, the first of its kind in the region, offers a long-term subscription service with zero or minimal upfront capital investment. This comprehensive offering includes sustainable cooling solutions, energy storage, installation and operation of photovoltaic solar panels, as well as smart electric vehicle charging stations.