Daikin and SP Group to Form New Joint Venture to Build Singapore’s Largest Industrial District Cooling System

June 2022

In a press release by Singapore Power Group (SP Group), the company announced that it has formed a new Joint Venture with Daikin Singapore, with the aim of establishing Singapore’s largest industrial district cooling system for STMicroelectronics’ (ST), a Franco-Italian electronics and semiconductor manufacturer, Ang Mo Kio TechnoPark. The district cooling system will have a cooling capacity of up to 36,000 refrigerant tons, and is expected to help ST achieve 20 percent savings in cooling-related electricity consumption annually once completed in 2025, and support ST’s target of achieving carbon neutrality by 2027.

The Joint Venture will be 70 percent owned by SP and 30 percent by Daikin, and will centralize chilled water production to optimize chiller efficiency and deliver a 24/7 chilled water supply to meet ST’s wafer fabrication needs. Daikin is also expected to deploy one of its most efficient 2,000-tonne HFO Chiller for this project, which has zero ozone depletion effect and is designed to significantly reduce the Global Warming Potential.

Additionally, both companies have signed a separate Memorandum of Understanding (MOU) to explore the potential of district cooling in other Southeast Asian countries, starting with Indonesia. Under the MOU, both companies aim to combine their expertise, experience and resources in various markets to help lower their energy consumption and reduce their carbon footprint, empowering smart, low-carbon cities across the region, and supporting Singapore’s sustainability ambitions under the Singapore Green Plan 2030.

(Source: SP Group)

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