Daikin in JV to install Singapore’s largest district cooling system20th May 2022
SINGAPORE: Daikin Singapore and leading Asia Pacific utilities company SP Group have formed a new joint venture to install Singapore’s largest district cooling system (DCS).
The system will serve the new TechnoPark for global semiconductor company STMicroelectronics in Ang Mo Kio, a planning area and residential town situated in the north-east of Singapore. At an estimated project value of US$370m over 20 years, it will be Singapore’s largest district cooling system to be implemented for an industrial development when operational in 2025.
Under the agreement, the JV will design and build the DCS, with SP providing chilled-water-as-a-service to meet both the manufacturing and spatial cooling needs of ST. With a cooling capacity of up to 36,000RT, it will help ST achieve 20% savings in cooling-related electricity consumption annually, as well as enable ST to reduce carbon emissions of up to 120,000 tons per year.
Daikin and SP have also signed a separate MOU to explore the potential of district cooling in other south east Asian countries, starting with Indonesia. Under the MOU, Daikin and SP will combine their expertise, experience and resources to bring this sustainable cooling solution to the various markets to help lower their energy consumption and reduce their carbon footprint.
This project aligns with Daikin’s mission to build upon Singapore’s ongoing roadmap for greener buildings as well as the longer-term vision for a Singapore Smart-city that includes sustainability in its advocacy. The JV will be 70% owned by SP and 30% by Daikin.
In addition, Daikin will be deploying one of its most efficient 2,000 tonne HFO chillers for this project, using its latest chiller software and optimisation expertise. Daikin is also planning to launch other green initiatives, including DeCaIon (DCI), a water treatment solution that uses chemical-free electro-chemistry and an intelligent controller to eliminate scale, prevent corrosion and bio-fouling automatically.
Daikin and SP first collaborated back in 2020 to bring Singapore’s first large-scale residential centralised cooling system to the upcoming Tengah HDB Town. Both companies say they will continue to explore future opportunities to help create energy-saving models and help Singapore and the rest of Southeast Asia move towards a resilient, sustainable future.