Sembcorp Industries U96 % , on March 13, announced that it has been awarded its first greenfield renewables project in the Sultanate of Oman.
The project was awarded by the Oman Power and Water Procurement Company (OPWP) to an 80%-owned joint venture (JV) set up between Sembcorp Utilities and Jinko Power.
The award will see Sembcorp’s JV build, own and operate the 500MW Manah Solar II Independent Power Project (IPP) in Manah.
The plant is expected to be operational in 2025 and will be backed by a 20-year power purchase agreement with OPWP.
According to Sembcorp, the project will complement its existing capabilities and track record in the region, which includes the Salalah Independent Water and Power Plant. The energy-efficient power and water plant, also located in Oman, is 40%-owned by Sembcorp.
“The Manah Solar II IPP will mark Sembcorp’s first renewables project in the Middle East. To be constructed in the Sultanate of Oman, the project will leverage our strong network and presence for over 10 years in the country built through Salalah Independent Water and Power Plant. We are delighted to be awarded this project and look forward to working with Jinko Power to support the global energy transition,” says Andy Koss, CEO of Sembcorp’s UK and Middle East businesses.
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This project is expected to be financed through a mix of internal cash resources and external bank borrowings. It is not expected to have a material impact on Sembcorp’s earnings per share (EPS), net asset value (NAV) per share and leverage for the FY2023 ending Dec 31.
Shares in Sembcorp closed 5 cents lower or 1.31% down at $3.77 on March 13.