As a leading renewables player in Asia, we are committed to transforming our portfolio from brown to green and driving energy transition.
We are well-positioned to address Asia’s biggest energy challenges amidst the region's thriving growth, which is marked by robust momentum for decarbonisation and electrification.
Our Transformation Journey
In 2021, we unveiled our strategic plan to support the global energy transition and sustainable development. Since then, we have made significant progress, demonstrating robust execution capabilities and delivering strong results.
Our 2024 - 2028 Strategic Plan
Building on our strong momentum, we are reaffirming our commitment with the following targets for the next phase of growth:
Accelerate renewables growth
As a leading renewables player in Asia, we are on track to achieve our target of 10GW gross installed renewables capacity by 2025, and now aim to grow our gross installed renewables capacity to 25GW by 2028. As of June 2024, our gross renewables capacity was 15.6GW including an acquisition pending completion, and projects secured and under construction.
Strengthen commitment to decarbonisation
We have achieved our 2025 emissions intensity target of 0.40tCO₂e/MWh. By 2028, we aim to halve our emissions intensity to 0.15tCO₂e/MWh from 2023 levels. We remain committed to and are on track to reducing our absolute emissions to 2.7 million tCO₂e by 2030 and reaching net-zero emissions by 2050.
Well-positioned as Asia's Leading Low-carbon Industrial Park Developer
With over 30 years of experience and track record, we have built up scale and capabilities with 21 industrial parks, spanning over 14,000 hectares in key markets. By 2028, we aim to expand our land bank to 18,000 hectares and increase the gross floor area of our industrial properties to 1.5 million square metres.
Continue to leverage gas as a transition fuel to fund renewables growth
Our existing gas assets support Asia’s need for energy. Our contracted gas energy portfolio provides cash flow visibility and will continue to contribute meaningfully through 2028. This cash flow will be used to fund the growth of our Renewables segment.
We will continue to actively manage our gas portfolio to support Asia’s shift to a clean and responsible energy future and to meet our carbon commitments. This includes investing in capabilities to position us in low-carbon energy, low-carbon feedstock and carbon management. These include the production and consumption of hydrogen and its derivatives, in anticipation of its future commercial viability and technological maturity. By doing so, we aim to fulfil the needs of our customers, while addressing critical concerns of energy security, accessibility and affordability.
Capital allocation – increasing renewables investments
In line with our strategic targets, a significant share of capital will be deployed to support renewables growth. We will invest approximately S$10.5 billion, equivalent to 75% of 2024 - 2028 total investments, in renewables. 10% of capital will be deployed into investments including hydrogen-ready assets and a further 10% into decarbonisation solutions. The remaining 5% will be allocated to the Integrated Urban Solutions segment.
2024 – 2028 Capital Allocation Plan
Ensuring Sustainable Returns to Drive Energy Transition
Having identified our pillars of growth to execute our 5-year strategic plan and capital allocation to 2028, we will achieve strong capital management and financial outcomes.
We aim for our 2028 Return on Equity to be at least 13.0%. With greater confidence in our capabilities and execution of renewables projects as well as being able to significantly contract our gas assets which traditionally was highly merchant in nature, we believe that we would be able to achieve a long-term sustainable ROE higher than the 10% target that we set in the May 2021 Investor Day.
Learn more about Sembcorp’s refreshed strategic plan to drive the energy transition.