Singapore-based DBS Bank announced that it had provided a 40 million Singapore Dollar (~$29.29 million) loan to Sembcorp Industries to build one of the world’s largest floating solar photovoltaic (PV) projects on the Tengeh Reservoir in Tuas, Singapore.

Sembcorp Floating Solar Singapore, a fully-owned subsidiary of Sembcorp Industries, has started the construction of the 60 MW inland floating solar project in partnership with Singapore’s national water agency PUB.

The DBS Bank said that the project would likely be completed in 2021. It is expected to produce sufficient clean energy to energize 16,000 four-room flats while reducing an estimated 32 kilotons of carbon dioxide emissions annually.

According to Sembcorp Industries, the energy generated from the project will meet 7% of PUB’s annual power requirement to power its local water treatment plants.

“We have dedicated 10 billion SGD (~$7.31 billion) to finance renewable and clean energy development across Asia by 2024, with an expected double-digit growth annually,” said Lim Wee Seng, Head of Energy, Chemicals and Infrastructure, DBS Bank.

“Despite COVID-19, we closed the two financial advisory mandates in Taiwan and garnered four new advisory mandates across the solar, wind, and geothermal assets in Indonesia, Taiwan, and Vietnam this year,” Seng added.

Large-scale deployment of solar is challenging in Singapore due to its dense urban landscape and limited land. So, the project is in line with Singapore’s solar target of at least 2 GW by 2030.

According to the company, Sembcorp Industries has 240 MW of solar projects in the country.

Mercom earlier reported that Sembcorp Industries had launched a renewable energy certificate (REC) trading platform that manages RECs from multiple sources. Backed by the growth of the renewable sector in China and Southeast Asia, the Sembcorp platform allows customers to trade REC100 recognized RECs to meet their green energy requirements.

In February 2020, Sembcorp Solar, a wholly-owned subsidiary of Sembcorp Industries, had signed a power purchase agreement with Singapore Airlines and SIA Engineering Company to install, own, and operate over 20,000 solar panels.

Image credit: Sembcorp Industries