Sembcorp, Google sign multi-year renewable energy deal

SEMBCORP Industries has signed a multi-year renewable energy deal to provide a total energy solution to tech giant Google, with a focus on locally-sourced renewable power to support Google Singapore's operations.

The deal is part of Google's goal for its data centres to run entirely on carbon-free electricity by 2030, it said in a press statement on Tuesday. It added that the Sembcorp deal is its first renewable energy deal in South-east Asia.

The deal involves surplus energy generated from rooftop solar installations of close to 500 public housing blocks. Under a private collaboration with Sembcorp's power retail arm, Sembcorp Power, and its solar development arm, Sembcorp Solar, the excess solar power generated from these rooftop installations is exported into the national grid, and this will then go into the electricity supply of Google operations, the tech company said. (see clarification note)

It added that the deal pioneers the "seamless integration of solar power directly into an existing power supply", which Google and Sembcorp hope will contribute towards making renewable energy more widely accessible for Singaporeans in the future.

Sembcorp Industries' head of Singapore, South-east Asia & China (energy) Koh Chiap Khiong said the mainboard-listed company is able to customise and scale its sustainability solutions to support the ambitions of RE100 members such as Google.

RE100 is a global initiative bringing together more than 240 global businesses switching to 100 per cent renewable power.

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Google said the green energy deal is "just a first small step", and that it is looking to do more in this space in Singapore, South-east Asia and across the Asia-Pacific region.

Shares of Sembcorp Industries were up 0.8 per cent or S$0.01 at S$1.20 as at the midday break on Tuesday.

Clarification note: Google has clarified that the deal is a private collaboration, and the energy it is purchasing is excess solar power generated by the HDB rooftop installations. The article has been updated to reflect this.