Sembcorp to sell India unit to Tanweer Infrastructure

The proposed sale will cut Sembcorp’s GHG emission intensity to 0.32 tCO2e/MWh.

Sembcorp Energy India Limited (SEIL), one of the largest IPP in India and operates two supercritical coal-fired plants with a combined capacity of 2.6 gigawatts, will be sold to Tanweer Infrastructure for around INR117b.

In a statement, Sembcorp Industries said the proposed sale came after its wholly-owned subsidiary Sembcorp Utilities signed a share purchase agreement to sell 100% of the share of SEIL to Tanweer.

Tanweer is indirectly owned by a consortium led by Oman Investment Corporation S.A.O.C. in partnership with the Ministry of Defence Pension Fund.

“The sale of SEIL accelerates the transformation of Sembcorp’s portfolio from brown to green, while protecting the interests of all stakeholders,” said Sembcorp Group CEO Wong Kim Yin.

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The transaction will reduce Sembcorp’s greenhouse gas emission intensity to 0.32 tonnes of carbon dioxide equivalent per megawatt hour (tCO2e/MWh) from 0.51 tCO2e/MWh, enabling the company to reach its target of cutting its emissions intensity to 0.40 tCO2e/MWH by 2025.

Renewable energy will account for 51% of Sembcorp’s total energy capacity upon completion of the sale, up from 43% as of 30 June 2022. Of its 14GW energy portfolio, 7.1GW will be from renewable energy sources.

Sembcorp will still render technical advisory services to SEIL through a technical services agreement to ensure continuity and operation efficiency. It will also help the unit’s efforts to cut greenhouse gas emissions intensity through a financial incentive.

The proposed sale is expected to close six months after the Extraordinary General Meeting around November this year.