Keppel Seghers and Zhen Hua sign contract for Hong Kong’s Integrated Waste Management Facility

Keppel Seghers Hong Kong Limited and Zhen Hua Engineering Co. Ltd. (Zhen Hua), the wholly owned subsidiaries of Keppel Infrastructure Holdings Pte Ltd (Keppel Infrastructure) and China Harbour Engineering Company Limited respectively, have signed the HKD 31 billion (approx. SGD 5.3 billion) contract with the Environmental Protection Department (EPD) of the Government of the Hong Kong Special Administrative Region to design, build and operate Hong Kong's first Integrated Waste Management Facility (IWMF) off the coast of Shek Kwu Chau and south of Lantau Island, Hong Kong. As Keppel had announced on 1 December 2017, the contract for the IWMF was awarded via a competitive international tender called by the EPD.

The agreement was signed by Dr Chui Ho Kwong, Assistant Director (Nature Conservation & Infrastructure Planning, EPD, Mr Jackson Goh, Director of Keppel Seghers Hong Kong Limited and Mr Su Yan Song, Managing Director of Zhen Hua. The signing ceremony was also witnessed by Mr Yu Wang Pong, Principal Environmental Protection Officer (Strategic Facilities Development & Planning), EPD, Dr Ong Tiong Guan, CEO of Keppel Infrastructure and Mr Tang Qiaoliang, President, China Harbour Engineering Company Limited.

Keppel Infrastructure is a wholly-owned subsidiary of Keppel Corporation Limited. The above contract is not expected to have any significant impact on the earnings per share and net tangible asset per share of Keppel Corporation Limited for the current financial year.

About the Integrated Waste Management Facility
Located off the coast of Shek Kwu Chau, which is to the south of Lantau Island, the IWMF is Hong Kong's first integrated waste management facility for municipal solid waste. As a key part of Hong Kong's waste management strategy, it is able to reduce the total volume of waste treated at the facility by more than 90%, thus extending the lifespan of landfills. Currently, Hong Kong landfills its non-recycled waste.

Expected to be completed in 2024, the IWMF comprises a WTE Plant, a mechanical treatment plant and ancillary facilities, which include an administration building, visitor centre, port handling facilities, as well as desalination and wastewater treatment plants.

Contracted to treat about 3,000 tonnes per day of mixed municipal solid waste, the WTE Plant will feature Keppel Seghers' proven WTE technology with its air-cooled grate, boiler design, and advanced combustion control system. In addition, the WTE Plant will also use Keppel Seghers' flue gas cleaning system, ensuring that the plant's emissions will comply with Hong Kong and EU standards, which are amongst the most stringent international standards available.

Capable of producing approximately 480 million kilowatt-hours (kWh) of net electricity per year, these surplus electricity beyond plant consumption will be exported into the grid. The exported green energy will power up to 100,000 households and help reduce 0.44 million tonnes of carbon dioxide per year.

The IWMF will also feature a 200 tonnes per day mechanical treatment plant for sorting and recycling of glass, plastics, and metals. The separated materials will be transported back to Hong Kong for further processing into end products.

The onsite desalination plant will supply process water for the IWMF and the wastewater treatment plant will ensure that all effluents are treated and reused as process water in either the WTE or mechanical treatment plant or for general washing and landscape irrigation within the IWMF.

The IWMF will have extensive greening that will integrate it seamlessly with its natural surroundings. As part of Hong Kong Government's holistic approach, the IWMF will also feature a visitor gallery for environmental education, to raise awareness and drive towards a greener Hong Kong.