The contract, awarded by repeat customer Shenzhen Energy Environment Engineering Co., Ltd. on 19 November 2016, is for the expansion of the existing facility through the provision of the core equipment, design and technical services for the plant's furnace and boiler.
Scheduled to be operational by end-2018, the Nanshan Phase II expansion will add 1,650 tonnes per day (TPD) of incineration capacity, enabling the facility to process up to 2,450 TPD of municipal waste, up from the current 800 TPD.
The plant will provide approximately 45 MW of electrical energy to the grid, with more than 7% of this generated by utilising marsh gas (methane) from the leachate treatment process as an additional fuel source to boost energy output. Keppel Seghers also provided the process design, technology and services for Phase I of the facility, which has been in operation since 2003.
Dr Ong Tiong Guan, CEO of Keppel Infrastructure, said, "This is the seventh waste-to-energy project that Keppel is undertaking for Shenzhen Energy Environment Engineering and we are proud to be their trusted partner once more. The confidence shown in Keppel is a reflection of our proven track record in delivering quality solutions competitively, with high standards of safety and to customers' satisfaction."
The Nanshan Phase II expansion is Keppel Seghers' sixth contract win in China for 2016, and reinforces Keppel's position as the leader among imported WTE technology solutions providers in the country. In September 2016, Keppel Seghers secured the contract, also from Shenzhen Energy Environment Engineering, to provide technology and services to the Baoan III WTE plant in Shenzhen. This expansion will enable the Baoan WTE facility to process up to 8,875 TPD and make it the world's largest WTE facility by incineration capacity.
The abovementioned transaction is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.
