Keppel's environmental solutions benefit more than 15 million people in China to date

Keppel Seghers, the environmental technology division of Keppel Integrated Engineering (KIE), has further strengthened its market leadership in China by securing two contracts totaling S$23 million to provide solid waste treatment technologies and services in Suzhou, Jiangsu province, and Zhongshan, Guangdong province.

The first contract, a repeat order awarded by China Everbright International (EBI), is for the supply and installation of Keppel Seghers’ multi-stage air-cooled grate, combustion control system, boiler and semi-dry flue gas cleaning for the phase two expansion of an existing waste-to-energy (WTE) plant in Suzhou.

Keppel Seghers will also provide assistance and supervision during the construction and commissioning of the WTE plant, as well as provide technical training for the plant’s personnel on plant operations and equipment maintenance.

In September last year, Keppel Seghers has successfully commissioned and delivered phase 1 of the Suzhou WTE plant. When the expansion phase is completed in end 2008, the plant’s capacity will be increased to 1550 tons/day.

Mr Chua Chee Wui, Chief Executive Officer of KIE, says “This repeat order from China Everbright is solid proof of our customer’s satisfaction with Keppel Seghers' delivery of the first phase of the Suzhou WTE plant, which has exceeded the technical specifications in terms of treatment capacity, electricity output and emissions standards.

“Our partnership with EBI has been a win-win for both parties. We look forward to fostering a closer collaborative relationship with EBI as we work hand-in-hand to grow our presence in the environment protection industry of China.”

The second contract, awarded by new customer Zhongshan Tianyi Energy Sources Company, is for the supply and installation of Keppel Seghers’ multi-stage air-cooled grate, combustion control system, boiler and semi-dry flue gas cleaning in Zhongshan city.

Keppel Seghers will also provide assistance and supervision during the construction and commissioning of the WTE plant, as well as provide technical training for the plant’s personnel on plant operations and equipment maintenance.

When completed in end 2008, the 900 ton/day WTE plant will treat wastes generated by the residents of eight towns in the north of Zhongshan.

Added Mr Chua, “Keppel Seghers’ comprehensive suite of environmental solutions currently benefits more than 15 million people in China by converting municipal waste into clean energy.

“Over the last few years, the Chinese Government has demonstrated its keen interest and resolve in environmental protection and alternative energy production. The growing number of WTE installations is proof that China sees this technology as a sustainable solution to preserving the environment while developing its booming economy.

“Keppel Seghers is keen to strengthen our position as the market leader for imported waste-to-energy solutions in China where we have 60% of the market by bringing our suite of services to more cities in this country.”

Currently, Keppel Seghers is undertaking waste-to-energy projects in Changshu, Shenzhen, Tianjin, Jiangyin and Guangzhou in China.

Keppel Seghers’ WTE technology turns municipal solid waste into energy by incinerating the waste and capturing the heat in a boiler. The sliding and tumbling tiles of its multi-stage grate thoroughly mixes and aerate the refuse, ensuring a complete combustion of the refuse. Flue gases produced as a result of incineration are purified with Keppel Seghers’ semi-dry flue gas cleaning technology with lime milk atomizing and activated carbon injection. The residues are captured by a fabric filter. The operation of the WTE plant is highly automated with the use of Keppel Seghers’ combustion control system.

Globally, Keppel Seghers has an established track record of involvement in thermal and waste-to-energy projects in Europe, USA and the Asia Pacific for more than 40 years. In Singapore, Keppel Seghers has commenced the construction of Singapore’s newest waste-to-energy plant at Tuas South on 5 October 2006. This is Singapore’s first incineration plant to be built under the Public-Private Partnership (PPP) initiative.

The aforementioned contracts are not expected to have any significant impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the financial year ending 31 December 2007.

Background information

Keppel Integrated Engineering (KIE)
KIE is the environmental technology and engineering division of Keppel Corporation Ltd, a leading company in Singapore listed on the Singapore Exchange Securities Trading Limited.

Keppel Seghers, a member of the KIE Group, is a leading provider of comprehensive environmental solutions, including alternative energy, ranging from consultancy, design and engineering, technology and construction to operation and maintenance of facilities.

With a global footprint in more than 25 countries, KIE provides technology and fulfillment services for the treatment of municipal solid waste, hazardous and medical waste, wastewater and sludge treatment, potable water, desalination and home filtration systems.

To date, KIE has more than 350 water and wastewater projects and more than 100 waste-to-energy projects worldwide. KIE continues to actively pursue thermal waste treatment, water and wastewater treatment projects globally.

China Everbright International (EBI)
EBI is a public-listed company on the Main Board of Hong Kong Stock Exchange. The company has grown into a strong and reputable conglomerate focusing primarily on the businesses of infrastructure (including power and transportation) and property development. In recent years, EBI has ventured into the environmental protection industry in China, with the aim to become a key competitive player in the market.

Keppel Seghers - EBI Partnership
Keppel Seghers entered into a strategic alliance with EBI in 2004 to provide waste-to-energy incineration and wastewater treatment services in China and overseas. Under the terms of the agreement, Keppel Seghers and EBI will collaborate in the exploration, development and investment of environmental projects, as well as provide technical consultancy, project management, plant operations & maintenance services.

To date, the partnership has yielded promising results, with WTE projects in Suzhou, Changzhou and Jiangyin.

Zhongshan Tianyi Energy Sources Company
Tianyi Energy Sources Co. Ltd is a subsidiary of Guangdong Tianyi Group, a conglomerate with interests in refinery, power-generation, energy as well as real estate.

For further information, please contact

Teo Chang Ching
Senior Executive
Group Corporate Communications
Tel: (65) 6413 6426
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