Sembcorp Industries sells India coal power firm to 'trusted partner'

The energy firm is operating two coal-fired plants totalling 2.6 gigawatts. 

Sembcorp Industries declared the sale of its subsidiary, Sembcorp Energy India Limited (SEIL), to Tanweer Infrastructure Limited, an indirectly-owned partner of Sembcorp, for $2.1b.

According to a bourse filing, Sembcorp Industries said independent power producer, SEIL, is operating two coal plants totalling 2.6 gigawatts. 

Tanweer Infrastructure is indirectly owned by Sembcorp Industries’ “proven and long-term” partner, Oman Investment Corporation (OIC), a leading Omani private equity investment firm with investments in energy and infrastructure projects, amongst others.

The sale will also speed up Sembcorp Industries’ reduction target of carbon emissions from 0.51 tonnes of carbon dioxide equivalent per megawatt hour (tCO2e/MWh) 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,” read the statement.

But Sembcorp maintained that it will ensure support on the improvement of SEIL’s greenhouse gases emissions intensity through technical advisory services.

“SEIL’s existing operations team will continue to be employed under the new ownership of Tanweer Infrastructure. Sembcorp will also provide ongoing support for SEIL’s initiatives to reduce its GHG emissions intensity,” read the statement.

Sembcorp Industries CEO Wong Kim Yin said they will protect the interests of all the stakeholders after selling its 100% stake in SEIL.

“OIC is a trusted and reliable long-term partner, and we are confident SEIL will continue to provide reliable services to its power distribution customers, as well as maintain stability of relationships with suppliers, communities and employees. The innovative GHG emissions intensity reduction incentive rate also underscores our commitment to sustainable energy transition,” said Wong.