Keppel inks $70 mln deals to supply ‘energy-as-a-service’ in Vietnam

Keppel Corp. has secured $70 million worth of contracts to provide long-term and recurring “energy-as-a-service” (EaaS) in Vietnam, which the Singapore multi-sector group sees as a market with potential for growth.

Under the new agreements, Keppel will provide the service to Republic Holiday Inn, Republic Suite Plaza, and Estella Place in Ho Chi Minh City, as well as the Grand Mercure Hotel & Resort in the central province of Quang Binh.

The deals were signed on Monday at the opening of an operations nerve center at Keppel’s 64-hectare integrated township Saigon Sports City, which is being developed in Thu Duc city on HCMC’s outskirts.

The center enables Keppel to remotely monitor and optimize all of its energy assets in Vietnam in real time by tapping digital technology, artificial intelligence and machine learning, Keppel said.

According to the Singaporean group, its EaaS generally enables businesses and building owners to enter a supply-and-service contract for energy usage and management without making significant upfront capital investments.

“The signing of our latest contracts and the opening of our advanced operations nerve center here in Ho Chi Minh City are significant steps forward in the expansion of our EaaS offerings and track record in Asia,” said Poh Tiong Keng, general manager for Vietnam and India, infrastructure division.

“As Vietnam accelerates its plans to reach net zero [emissions] by 2050, we see tremendous opportunities to offer more of Keppel’s sustainability solutions and services in the country,” he added.

As part of the new contracts, Keppel will design and retrofit existing cooling systems of its clients’ developments to improve energy efficiency and asset performance. The projects are expected to be completed in phases and are predicted to offset over 3,500 tons of carbon emissions annually, the group said.

On the same occasion, Keppel also signed several memorandums of understanding with partners in Vietnam, including Filmore Group, Thanh Dat, and Alphanam Group, to explore implementing other types of EaaS, which include cooling, solar systems and electric vehicle charging.

Keppel is seeking to make more inroads into the Vietnamese market as the country offers diverse long-term opportunities, including those from energy, green development, the environment, and data centers, Joseph Low, president of Keppel Land Vietnam, told The Investor this April.

“We are excited by the many long-term opportunities offered by Vietnam,” he said.

Keppel Land, part of the group, is paying $50 million for a 65% stake in a joint venture company named ProjectCo that will hold a retail property in Hanoi. The acquisition is being made through Keppel Land’s wholly-owned subsidiary VN Prime Vietnam Co., Ltd (VNPV).

VNPV will acquire the stake for an aggregate consideration of approximately VND1.23 trillion ($52 million), subject to completion adjustments. The consideration will be payable in cash in two tranches.

Vietnamese firm Binh Minh Investment and Trading Development JSC will hold the remaining 35% stake.