Sembcorp moves into new industries as UK plants wind down

Singapore utilities giant Sembcorp Industries (Sembcorp) is moving into the growing renewable energy segment. Analysts say this should pick up the slack caused by the plant closures at Wilton International, an industrial park in northeast England, which is owned by Sembcorp. A report by Nomura analyst Lisa Lee highlights Sembcorp.’s £250 million (US$400.41 million) Ensus bioethanol plant at Wilton, which is expected to be the largest green-fuel producer in Europe once it comes onstream in the second quarter of 2009, and Sabic’s £200 million (US$320.33 million) facility to produce low-density polyethylene. Lee also notes that since taking ownership of Wilton in 2003, Sembcorp has spent much of £150 million (US$240.24 million) on green technology. These include the UK’s first large-scale “wood-to-energy” biomass power station, and a new gas turbine/heat recovery steam generator facility to supply the Ensus plant. Sembcorp is expected to start a 15-year utilities supply contract for the bioethanol facility later this year. In addition, these green technology investments allow Sembcorp to earn from the trading of carbon credits, renewable obligation certificates and levy exemption certificates. (July 20, 2009)