Keppel Seghers secures bonuses and signs five-year Technical Support

Keppel Seghers Belgium N.V. and Keppel Seghers UK Limited (collectively, Keppel Seghers), have secured two performance bonuses and signed a five-year Technical Support Agreement totalling over £7 million with Viridor EfW (Runcorn) Limited, for the Phase 2 Thermal Power Station at Runcorn in the United Kingdom (Runcorn EfW). The Phase 2 Thermal Power Station is owned by Viridor EfW (Runcorn) Limited, a special purpose vehicle owned by Viridor Waste Management.

The bonuses, worth £4 million (approx. S$7.3 million), were awarded in recognition of Keppel Seghers` excellence in operational performance for higher electrical efficiency and lower chemical consumption levels. Performance of the Runcorn EfW has exceeded expectations since the project was completed and handed over to the client and commercial operations commenced in 2015. The increased revenue from higher power output, and significant operational cost savings from lower chemical consumption have allowed the plant to enjoy stronger economic returns.

As a result of Keppel Seghers` successful completion of the Runcorn EfW and robust operating performance, Viridor EfW (Runcorn) Limited has also signed a Technical Support Agreement valued at £3.25 million (approx. S$5.9 million) with Keppel Seghers, for them to provide performance enhancement reviews for the plant and further specialist technical support to the plant`s current Operations & Maintenance team for a period of five years starting from 2018.

The scope of this contract covers regular plant operation reports, personnel training, assistance during major overhauls, and data analysis on plant performance enhancement potential.

Dr Ong Tiong Guan, CEO of Keppel Infrastructure, the parent company of Keppel Seghers, said, "The performance bonuses from our client reflect Keppel Seghers` excellent track record in providing best-in-class energy and environmental assets to our customers while optimising the performance of their operating assets. Since handing the Runcorn EfW over to our client in 2015, Keppel Seghers has enjoyed a strong working relationship with them. The technical support contract is a testament to the client`s satisfaction with and recognition of our capabilities and track record."

"We are happy to award Keppel Seghers with two performance bonuses for the energy-efficient and environmentally-friendly operations of the Runcorn EfW plant. We want to recognise the positive contribution they are making towards sustainability in the UK," says Mr Phil Piddington, Managing Director of Viridor EFW (Runcorn) Limited.

Together, Runcorn Phases 1 and 2 make up the largest waste and renewable energy project in the UK. The combined facility is able to process up to 850,000 tonnes of Refuse Derived Fuel (RDF) per year, converting it into renewable energy comprising approximately 80 MW of electricity and 52 MW of thermal energy in the form of steam. This makes it one of the largest and most efficient Combined Heat and Power (CHP) facilities in the world.

Keppel Infrastructure is a wholly-owned subsidiary of Keppel Corporation Limited. The above transactions are not expected to have any significant impact on the earnings per share and net tangible asset per share of Keppel Corporation Limited for the current financial year.