Keppel to be 2nd service provider for centralised cooling system in Tengah, will serve 3 BTOs

Keppel Ltd will be a new service provider for the centralised cooling system (CCS) in Tengah, after being awarded a 20-year-contract to provide the CCS in three upcoming Build-to-Order (BTO) projects.

According to a Sep. 30 joint release, Keppel will work with the Housing and Development Board (HDB) to deliver the cooling system to about 3,500 households in the Brickland Weave, Plantation Edge I & II, and Plantation Verge precincts.

Homebuyers will have the choice to opt in for the system, which offers a more energy-efficient solution compared to conventional air-conditioning systems, by using chilled water piped to homes from centralised chillers.

These three BTO projects are slated for completion in the second half of 2027.

Contract comes after 'teething issues' with CCS launch

Previously, SP Group, in collaboration with manufacturer Daikin, rolled out the CCS in 18 precincts in Tengah.

This was the first time the system was implemented in an HDB context.

However, its launch was plagued by reports about condensation and leaking, with more than 1,000 households cancelling their CCS contracts.

Daikin and SP Group had said these issues arose due to a "compressed timeline" to hand over the units to Tengah residents.

Regarding the new contract, the release said Keppel will be "leveraging its track record and expertise" in collaboration with HDB to deliver the CCS to homes, noting that the firm has a combined cooling portfolio of more than 260,000 refrigeration tonnes in the region.

In 2023, Keppel was awarded a 30-year contract to design, build, own and operate a new large-scale district cooling plant at Jurong Lake District.

It is also providing cooling services to CapitaLand and Perennial Holdings flagship developments in Singapore and China.

Tan Meng Dui, chief executive officer of HDB, said, "We are glad to welcome a well-established player like Keppel on board as a CCS service provider for future BTO projects."

"With more market players participating in the provision of CCS services in a public housing setting, we hope to further strengthen the industry's capabilities and deepen the CCS ecosystem, to make HDB living highly liveable and sustainable."

Cindy Lim, chief executive officer of Keppel's Infrastructure Division, said Keppel is pleased to be awarded the contract to provide cooling services to the three latest precincts in Tengah.

She added that Keppel is "well-placed" to work with HDB to provide high-quality and modern cooling solutions to homeowners.

Two service providers, separate systems

Mothership understands that SP Group will continue to install and operate the CCS for the 18 precincts that it was previously awarded.

Residents will only be able to sign up for CCS services from the service provider in charge of their precinct.

The Sep. 30 joint release stated that Keppel will manage the sign-ups, design, installation, project management, operation, and maintenance of the CCS in the three precincts under their care.

Keppel's CCS will also be connected to an operations nerve centre for remote control and real-time performance monitoring.

Homeowners can visit the new Keppel Energy-as-a-Service (EaaS) Experience Centre at HDB Hub in Toa Payoh to see how their system will look in a physical mock-up of a typical home unit.

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Top image from HDB website