Singapore-based asset manager and operator Keppel, through its Infrastructure Division, has signed a non-binding memorandum of understanding (MoU) with the Japan Bank for International Cooperation (JBIC), aimed at establishing a clean energy supply chain in Asia that is expected to help advance the energy transition and promote sustainable digitalization in the region.
Under the MoU, the parties seek to cooperate in areas such as renewable energy, transmission lines for energy trade, hydrogen, ammonia, data centers and subsea cables.
Keppel said the collaboration aims to contribute to carbon neutrality and economic growth in Asia, adding that it will also make avail potential financing for its ongoing projects in electricity importation and low-carbon energy.
Chua Yong Hwee, Managing Director, Energy Nexus, Keppel’s Infrastructure Division, commented: “Our partnership with JBIC marks an important step forward in advancing Asia’s journey towards a low-carbon future anchored on sustainable infrastructure for energy and connectivity. By combining Keppel’s deep expertise in sustainability and digital infrastructure, with JBIC’s financial strengths and the advanced technology of Japanese enterprises, we are well-positioned to build a robust energy supply chain together, setting new standards for sustainable development in Asia while generating value for our stakeholders.”
To note, Keppel is involved in various projects in Asia. These, reportedly, include cross-border low-carbon electricity trade in the Association of Southeast Asian Nations (ASEAN), advancing clean energy projects involving hydrogen and ammonia, as well as developing and operating quality data centers in Asia-Pacific. The company is also said to be pursuing opportunities to develop two new subsea cable systems with over 30 fibre pairs connecting Southeast Asia to the rest of Asia and beyond.
As for JBIC, it is understood that it seeks to reduce its operational greenhouse gas (GHG) emissions to net zero by 2030 and achieve net zero emissions in its finance portfolio by 2050. As Japan’s policy-based financial institution, JBIC stressed it will continue to contribute toward creating business opportunities for Japanese companies and maintaining and improving the international competitiveness of Japanese industry through strengthened cooperation with important partners in the decarbonization sector.