New and improved Senoko waste-to-energy plant gets unveiled

Additional incineration capacity is on the way.

Keppel Infrastructure Trust (KIT), through its wholly owned subsidiary, has entered into an agreement with the National Environment Agency (NEA) to provide additional incineration capacity to the Senoko Waste-to-Energy (WTE) plant, one of the three facilities under KIT's current portfolio.

According to a release from the Keppel Corporation, to increase its capacity while maintaining its land use footprint, the Senoko WTE plant will undergo upgrading, currently planned to take place between 3Q 2015 and 3Q 2016. The upgrade will progressively increase the plant's capacity to treat additional waste volumes.

Upon completion, the contracted incineration capacity of the plant will increase by up to 10% from 2,100 tonnes per day. The capacity payments from NEA will correspondingly be increased.

Mr Khor Un-Hun, Chief Executive Officer of Keppel Infrastructure Fund Management, Trustee-Manager of Keppel Infrastructure Trust, said, "We will work towards the safe and successful completion of the upgrade, which is also expected to improve the operating cash flow from the plant."

The upgrading works mainly involve modifications to the plant's incineration units and the steam-condensate system, and will be carried out progressively and scheduled with the planned annual maintenance of each incineration unit so as to maximise the overall operational availability of the plant during the period.

Ensuring close coordination with current operations and maintenance (O&M) activities, Keppel Seghers, the O&M contractor for the existing facility, will design and build the upgrades.

The above transaction is not expected to have any material impact on the net tangible assets and earnings per unit of KIT for the current financial year.