Sembcorp announces strategic plan for 2023 to 2028; targets 25GW of gross installed renewables capacity by 2028

Shares in Sembcorp closed 12 cents higher or 2.54% up at $4.84 on Nov 3.

Sembcorp Industries (Sembcorp) has announced its strategic plan for 2023 to 2028 in a bid to transform its portfolio from brown to green and drive energy transition. This follows the group’s strategic plan that was unveiled in 2021 to support the global energy transition and sustainable development.

Since 2021, Sembcorp’s gross renewables capacity increased four-fold to 12.0GW, which now comprises 61% of the group’s energy portfolio. The group also achieved its 2025 greenhouse gases (GHG) emissions intensity target ahead of time.

By 2028, Sembcorp now aims to grow its gross installed renewables capacity to 25GW. The group is on track to achieve its target of 10GW of gross installed renewables capacity by 2025.

The group also aims to halve its emissions intensity to 0.15 tCO2e/MWh by 2018, from its forecasted levels of 0.30 tCO2e/MWh for 2023. The group has already achieved its 2025 emissions intensity target of 0.40 tCO2e/MWh (Scope 1 and 2).

It remains on track to achieve its targets of reducing absolute emissions to 2.7 million tCO2e (Scope 1 and 2) by 2030, and net-zero emissions by 2050.

Meanwhile, Sembcorp says it will continue to actively manage its gas portfolio to support Asia’s need for energy.

“The contracted gas portfolio provides cash flow visibility and will continue to contribute meaningfully through 2028. This cash flow will be used to fund the growth of Sembcorp’s renewables segment,” says the group in its Nov 6 statement.

“Sembcorp will invest in capabilities to position itself in low-carbon energy, low-carbon feedstock and carbon management. These include the production and consumption of hydrogen and its derivatives, in anticipation of its future commercial viability and technological maturity. By doing so, Sembcorp aims to fulfil the needs of its customers, while addressing critical concerns of energy security, accessibility and affordability,” it adds.

Further to its statement, Sembcorp says it will invest some $10.5 billion – or 75% of its total investments from 2024 to 2028 – in renewables. About 0% of capital will be deployed into investments including hydrogen-ready assets and a further 10% into decarbonisation solutions. The remaining 5% will be allocated to the group’s integrated urban solutions segment.

“Our vision is to be a leading renewable energy player in Asia, to drive energy transition and sustainable development. The 2023-2028 strategy provides a clear direction for Sembcorp for the next five years and we are well-positioned to capture tremendous opportunities in the key markets and create value for our stakeholders,” says Wong Kim Yin, group president and CEO of Sembcorp.

Shares in Sembcorp closed 12 cents higher or 2.54% up at $4.84 on Nov 3.

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