Sembcorp Industries secures 18-year power purchase agreement with Micron

The agreement will be accretive to Sembcorp’s earnings for the FY2023.

Sembcorp Power, the wholly-owned subsidiary of Sembcorp Industries U96, has secured a power purchase agreement with Micron Technology’s wholly-owned subsidiary, Micron Semiconductor Asia Operations Pte Ltd.

The 18-year agreement will see Sembcorp supplying Micron with up to 450MW of power. The agreement will be accretive to Sembcorp’s earnings for the FY2023 ending Dec 31.

At the same time, Sembcorp Cogen Pte Ltd, another one of Sembcorp’s wholly-owned subsidiaries, has issued a limited notice to proceed with a new 600MW hydrogen-ready combined cycle power plant facility development to the consortium of Mitsubishi Power Asia Pacific Pte Ltd and Jurong Engineering Limited.

The power plant will be operational by 2026. This will be Sembcorp’s fourth combined cycle power plant in Singapore.

The details of the development of the plant will be revealed when the turnkey contract is awarded by the 1HFY2023.

Shares in Sembcorp closed 1 cent lower or 0.27% down at $3.64 on Feb 27.

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