Keppel DHCS to offer district heating and cooling in Tianjin Eco-City

Keppel DHCS to offer district heating and cooling in Tianjin Eco-City

Keppel DHCS Pte Ltd (Keppel DHCS), a wholly owned subsidiary of Keppel Integrated Engineering Ltd, has signed a joint venture agreement with Tianjin Eco-City Energy Investment and Construction Co., Ltd (TECEIC)1 to provide district heating and cooling system (DHCS) in Sino-Singapore Tianjin Eco-City (Tianjin Eco-City).

The joint venture, Tianjin Eco-City Keppel New Energy Development Co., Ltd. (TEC-Keppel), will be Keppel DHCS’ first foray in China. TEC-Keppel will be 80% held by Keppel DHCS and 20% held by TECEIC, with a total investment amount of RMB 300 million. The joint venture company’s registered capital of RMB 100 million will be contributed by the parties in cash in proportion to their shareholdings upon approval by the authorities.

The joint venture follows the feasibility studies that Keppel DHCS has been conducting in Tianjin Eco-City since June 2009. TEC-Keppel will focus on the investment, development, design, construction, operation, maintenance and consultancy for DHCS, Tri-generation and other utility services in Tianjin Eco-City.

DHCS enables buildings to consume less energy than those using conventional systems and are therefore considered environmentally friendly. Its energy-efficient and space-saving attributes make it suitable and attractive to address the needs of city centres, large production plants, hospitals and property developments.

Mr Joseph Ng, Chief Executive Officer of Keppel DHCS, said, “We are very happy that Keppel DHCS’ first foray overseas is for Tianjin Eco-City, a landmark project between China and Singapore.

“We are confident that this partnership will not only help Tianjin Eco-City meet its environmental targets, but also provide compelling cost-effective solutions to address the needs of its development.”

The joint venture is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the financial year ending 31 December 2010.

About Keppel DHCS Pte Ltd

A wholly-owned subsidiary of Keppel Integrated Engineering Ltd, the environmental engineering division of Keppel Corporation Limited, Keppel DHCS is currently Singapore’s largest DCS service provider.

Keppel DHCS provides cooling services through the development and operation of District Cooling Systems (DCS) at major business parks in Singapore. Keppel DHCS currently services Changi Business Park, one-north and Woodlands Wafer Fab Park with a total plant capacity exceeding 48,000 RT. Keppel DHCS was incorporated in 1998, and is the first DCS service provider in Singapore.

1 TECEIC is 60% held by Tianjin Eco-City Investment & Development Co., Ltd., 20% held by Tianjin Jinneng Investment Co. and 20% held by Keppel Integrated Engineering Ltd.

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