Sembcorp to sell Indian unit

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Singapore-headquartered Sembcorp Industries said this week that its wholly owned subsidiary, Sembcorp Utilities, has signed a deal to sell Sembcorp Energy India Ltd (SEIL) to Tanweer Infrastructure for INR 117 billion ($2.1 billion). 

SEIL is one of India’s largest independent power producers. It operates 2.6 GW of coal-fired plants in Andhra Pradesh. Tanweer Infrastructure is indirectly owned by a consortium led by private equity investor Oman Investment Corporation in partnership with Oman’s Ministry of Defence Pension Fund and Dar Investment.

The proposed sale will result in the deconsolidation of SEIL from Sembcorp. Tanweer Infrastructure will become the sole shareholder of SEIL upon completion of the deal. 

“The sale of SEIL will bring about a reduction of Sembcorp’s greenhouse gas (GHG) emissions intensity from 0.51 tCO2e/MWh (tons of carbon dioxide equivalent per megawatt-hour) to 0.32 tCO2e/MWh. Sembcorp would have achieved its 2025 target of reducing its GHG emissions intensity to 0.40 tCO2e/MWh ahead of time,” said Sembcorp. “The company’s absolute GHG emissions will also reduce from 26.2 million tCO2e to 10.4 million tCO2e.”

Upon completion of the sale, 51% of Sembcorp’s energy capacity will be renewable, up from 43%. Sembcorp will have a global energy portfolio of 14 GW, with 7.1 GW of renewables capacity, including solar, wind, and energy storage. 

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