HDB Awards New Centralised Cooling System Contract to Keppel for Nine BTO projects in Tengah

The Housing & Development Board (HDB) has awarded Keppel Ltd.'s Infrastructure Division a chilled water supply contract to design, install, and operate Centralised Cooling Systems (CCS) at nine upcoming Build-To-Order (BTO) projects in Tengah. This new agreement covers approximately 10,000 households within Tengah's Brickland, Park and Forest Hill districts. Together with an earlier contract awarded in September 2024 for three other BTO projects, a total of approximately 14,000 households across 12 Tengah BTO projects will have access to Keppel's CCS.

The CCS is an eco-friendly and energy-efficient cooling solution that uses up to 30% less energy compared to conventional air-conditioning systems. Chilled water is piped from centralised chillers directly to homes, eliminating the need for individual condensers. Residents who subscribe to the CCS early can enjoy having air-conditioning ready upon key collection.

Mr Tan Sze Tiong, Chief Sustainability Officer of HDB, stated that HDB is committed to realising the vision of Tengah as Singapore's first and largest smart and sustainable HDB town. He noted that partnering with Keppel gives more residents the option of an energy-efficient alternative to conventional air-conditioning while contributing to more sustainable living.

Mr Poh Tiong Keng, Executive Director of Energy-as-a-Service at Keppel, explained that the system delivers chilled water from high-efficiency chiller plants to homes, improving energy efficiency while enhancing comfort and ease of maintenance. Homeowners subscribing to the cooling service will benefit from a proven, modern system designed for long-term reliability and efficiency, potential cost savings with lower upfront equipment costs, reduced maintenance requirements, and predictable life cycle performance.

Keppel is committed to delivering consistent and reliable cooling services. They will incorporate engineering and design features to improve performance and better integrate the system within homes. The design and placement of chilled water pipes will be optimised, taking into account interior aesthetics where feasible and giving residents flexibility in planning their home layout. Keppel will work closely with HDB on the delivery of the CCS to subscribing households.

When completed, the CCS at the 12 BTO projects will be connected to Keppel's Operations Nerve Centre (ONC) for remote control and real-time performance monitoring. Using AI and machine learning, the ONC analyses operational data to support predictive maintenance, detect anomalies, forecast cooling demand, and optimise plant performance. This enables more proactive system management, higher reliability and continuous efficiency improvements over time.

Homeowners can visit Keppel's The Cooling Studio at HDB Hub in Toa Payoh to learn more about the benefits of CCS and view a full-scale mock-up of a typical home unit, including the system's features and installation. They can also view Keppel's CCS virtual tours, explore price plans, book an appointment to visit the Cooling Studio or sign up for CCS via Keppel's website at https://www.keppeleaas.com/residential-cooling.

The contract is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Ltd. for the current financial year.