Keppel signs multi-year deal to supply electricity to GlobalFoundries

Global asset manager Keppel’s infrastructure business will supply electricity to the Singapore operations of contract chipmaker GlobalFoundries under a multi-year agreement, the companies said on Tuesday.

From May Keppel’s existing power plants will supply between 150 megawatts (MW) and 180 MW of electricity per year at GlobalFoundries’ Singapore site.

United States-based GlobalFoundries is also expected to be a long-term buyer from Keppel Sakra Cogen Plant (KSC), which is being developed with Japan’s Mitsubishi Power and Singapore’s Jurong Engineering.

“GlobalFoundries is expected to contract about 25% of KSC’s total generation capacity for more than 15 years when the plant is operational,” the companies’ joint statement said.

With electricity from KSC, which is set to be completed in 2026 with total annual capacity of about 600 MW, GlobalFoundries aims to cut up to 70,000 metric tons, or 10%, of annual carbon-dioxide emissions at its Singapore site.

“With the ability to use hydrogen as part of its feedstock, it is expected that KSC will be able to provide GlobalFoundries with a resilient source of even lower-carbon power in future,” the companies said.

The chipmaker also has an option to switch part of the power supplied by Keppel to renewable energy such as wind and solar power as it seeks a 25% reduction in total greenhouse gas emissions by 2030.

Nasdaq-listed GlobalFoundries, which competes with Taiwan’s TSMC (2330.TW) and South Korea’s Samsung Electronics among others, last September opened a $4 billion semiconductor fabrication plant in Singapore as part of a large global expansion.

Its Singapore operations serve 200 clients worldwide, with the chips being used in cars and 5G technology. Reuters