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Sembcorp


Sembcorp Industries Ltd. is a Singapore-headquartered multinational corporation specializing in energy transition solutions, including renewable energy generation, natural gas services, and integrated urban development across Asia.
The company manages a substantial energy portfolio totaling 27.4 GW, of which 19.3 GW comprises renewable capacity such as solar, wind, and energy storage systems, operating in 11 countries. Its urban initiatives cover 14,800 hectares, fostering over 414,000 employment opportunities and drawing nearly US$58 billion in investments to support sustainable industrial and community growth. Key achievements encompass commissioning Southeast Asia's largest utility-scale energy storage system in 2023 and advancing projects like the Manah II Solar Independent Power Project in Oman ahead of schedule. While primarily recognized for its pivot toward low-carbon solutions, Sembcorp has encountered challenges, including accusations of greenwashing in coal asset sales and legacy issues from its demerged marine division involving bribery allegations in Brazil.

History

Origins and Founding in Singapore

Sembawang Corporation, a key predecessor to Sembcorp Industries, originated from 's post-independence efforts to repurpose colonial infrastructure for commercial use. Following the withdrawal of forces from the Naval Base in the late 1960s, the government initiated its conversion into a ship repair and building facility in June 1968, establishing Sembawang Shipyard as a government-linked entity to bolster the nation's marine industry amid rapid industrialization. This yard, operational by 1969, focused on repairing commercial vessels and expanded into engineering and logistics services, laying the foundation for diversified industrial activities under Sembawang Corporation Limited by the 1990s. Parallel to this, Singapore Technologies Industrial Corporation (STIC) emerged from Singapore's defense-industrial ecosystem, which developed in the and to achieve in and manufacturing. STIC, a of Singapore Technologies (now ), specialized in processes, utilities, and infrastructure projects, supporting national initiatives like urban development and resource management. By the mid-1990s, STIC had grown into a with expertise in power generation and environmental services, aligning with Singapore's push toward integrated industrial hubs such as . Sembcorp Industries was formally founded on October 1, 1998, through the merger of STIC and Corporation, announced on June 1, 1998, to consolidate Singapore's capabilities in , , and urban solutions under a unified entity. This state-orchestrated consolidation, listed on the , aimed to enhance competitiveness in global markets by leveraging complementary strengths in heavy and utilities, reflecting Singapore's strategic focus on wealth and without private founders. The new company retained the "Sembcorp" branding from Sembawang's heritage while incorporating STIC's scope, marking the origins of its modern structure.

Expansion and Key Milestones (1990s-2010s)

In the mid-1990s, Sembcorp's predecessor entities contributed to Singapore's industrial expansion, particularly through involvement in the development of as an offshore energy and chemicals hub, where partnerships with the and Tractebel established utilities and terminals to serve tenants. This period also saw early urban development initiatives, including the establishment of Batamindo Industrial Park in in 1990, a 320-hectare zone aimed at fostering bilateral economic ties. A pivotal milestone occurred on October 5, 1998, with the formation of Sembcorp Industries through the merger of Singapore Technologies Industrial Corporation (STIC) and Corporation, creating a diversified group focused on , and industrial services with assets exceeding S$5 billion. The merger integrated STIC's capabilities with Sembawang's shipbuilding and expertise, enabling broader diversification into utilities and . Entering the , Sembcorp expanded aggressively into utilities, acquiring assets such as a foothold in the UK's petrochemical sector via SembCorp Utilities in 2005, which bolstered generation and capacities. By 2001, the company pioneered sustainability reporting among Singapore-listed firms, issuing its first voluntary report aligned with guidelines, reflecting growing emphasis on environmental integration in operations. operations strengthened with books, while urban solutions grew through additional Indonesian parks like Bintan . The marked accelerated international growth, highlighted by the acquisition of a 97.66% stake in Cascal for US$203 million, enhancing management in , , and the with added capacity of over 1 million cubic meters per day. That year also saw entry into India's via a for a 1,320 MW supercritical power plant, operational by 2014, and the US$1 billion Salalah independent and power project in . Domestically, Sembcorp completed the 228,000 cubic meters per day reclamation plant in , one of the world's largest, and broke ground on Vietnam's fourth Singapore in Hai Phong. By decade's end, power capacity reached 5,600 MW and desalination hit 6 million cubic meters daily, underscoring diversified expansion amid global demand for sustainable infrastructure.

Demerger and Recent Strategic Shifts (2020s)

In June 2020, Sembcorp Industries announced the of its marine business, Sembcorp Marine Ltd. (SCM), to enable each entity to pursue independent strategies amid challenging market conditions exacerbated by the . The plan included a S$2.1 billion recapitalization for SCM through a 5-for-1 , followed by a distribution-in-specie of SCM shares to Sembcorp Industries shareholders, severing the parent's ownership stake. Shareholders approved the in August 2020, with completion on September 17, 2020, allowing Sembcorp Industries to refocus on energy and urban solutions while SCM concentrated on offshore and . Post-demerger, Sembcorp Industries shifted toward , unveiling a strategic plan in 2021 to support the global by expanding renewables and reducing reliance. This involved divesting non-core assets, such as the 2024 sale of Sembcorp Environment Pte Ltd for S$405 million, to streamline operations and fund green initiatives. By mid-2025, the company's gross renewables capacity reached 18.9 GW, surpassing its 2025 targets ahead of schedule and positioning it for a 25 GW goal by 2028 through acquisitions like the October 2025 purchase of a 300 MW solar asset in from ReNew. In February 2025, Sembcorp announced a reorganization to accelerate growth, including appointing dedicated managers for key business lines, pursuing acquisitions and partnerships in high-demand regions, and expanding gas services regionally alongside renewables scaling. This followed a March 2025 strategic review amid volatile energy markets, though the company later adjusted expectations by dropping its 2025 metric for 70% of net profits from green businesses due to slower-than-anticipated transitions. The shifts emphasize Asia-Pacific opportunities in power demand and decarbonization, with shares rising over 250% since 2020, reflecting investor confidence in the pivot despite macroeconomic uncertainties.

Corporate Structure and Governance

Ownership and Temasek Influence

Sembcorp Industries Ltd. is majority-controlled by (Private) Limited, Singapore's state-owned investment company, which holds approximately 49.5% to 50% of the company's issued ordinary shares as of mid-2025, making it the largest shareholder. This stake includes direct holdings of around 871 million shares and indirect interests through subsidiaries. The remaining ownership is dispersed among institutional investors (approximately 15-20%), individual retail investors (about 33%), and other entities, with no single non-Temasek shareholder exceeding 11-12%. Temasek's substantial ownership positions Sembcorp as a government-linked company (GLC) within Singapore's ecosystem of state-influenced enterprises, where —wholly owned by the government—manages investments on commercial principles but aligns with national strategic priorities such as and . This influence manifests in board representation and guidance on long-term capital allocation, including Sembcorp's pivot toward renewables post-2021 from its marine arm, though emphasizes operational independence for portfolio companies. Critics of Singapore's GLC model argue that such dominant stakes can prioritize state objectives over minority returns, potentially leading to conservative strategies amid transitions. However, Temasek's track record includes delivering compounded returns, with its portfolio yielding a 7% total return over 20 years ending 2025.

Leadership and Board Composition

Wong Kim Yin serves as Group President and Chief Executive Officer of Sembcorp Industries, having been appointed on July 1, 2020. He possesses over 30 years of experience in the energy sector and investment management, including prior roles as Group CEO of and in senior positions at . The executive leadership team supports the CEO across key functions and business segments. Eugene Cheng acts as Group and President & CEO of Integrated Urban Solutions. Other senior executives include Robert Chong as ; Charles Koh as Acting and of the GoNetZero™ platform; Koh Chiap Khiong as President & CEO of Gas and Related Services; and regional leaders such as A. Nithyanand for Renewables in , Alex Tan for Renewables East, and Vipul Tuli for Renewables West and Business. Following the March 18, 2025, divestment of Sembcorp Environment, CEO Lee Kok Kin transitioned to lead the acquiring entity. The consists of 11 members, providing strategic oversight with a focus on , , and . Tow Heng Tan has chaired the board since April 2023 as a non-executive non-independent , drawing on his as CEO of Pavilion Capital and former at . Lim Ming Yan serves as Lead Independent . The board features seven independent non-executive directors out of eleven, with the remainder including Wong Kim Yin and non-independent directors linked to major shareholder , such as Uwe Krueger.
DirectorRoleKey Background
Tow Heng TanChairman (Non-executive, Non-independent)CEO, Pavilion Capital; ex-Temasek CIO. Appointed Chairman 2023.
Lim Ming YanLead Ex-CEO, Group; Chairman, Business Federation.
Manu BhaskaranPartner, Centennial Group; economist with 40+ years in . Appointed July 2024.
Marina Chin Li Yuen, TKQP Law; dispute resolution expert. Appointed November 2023.
Kunnasagaran ChinniahEx-GIC executive; REIT board experience. Appointed August 2023.
Professor Uwe KruegerNon-independent DirectorVice Chairman, EMEA; ex-CEO, WS Atkins. Appointed October 2024.
Dr. Josephine Kwa Lay Keng and R&D specialist; ex-CEO, NSL.
Ong Chao ChoonEx-PwC partner; M&A advisory. Appointed November 2023.
Yap Chee KeongDeputy Chairman, ; ex-CFO, Power. Re-elected April 2025.
Wong Kim Yin (CEO) sector leader; appointed CEO 2020.
Recent board changes include the appointments of Bhaskaran and Krueger in 2024 to enhance economic and technical expertise, and the retirement of Nagi Hamiyeh—Temasek's head of EMEA—after the April 25, 2025, AGM. The board operates through committees such as (all independent members), , Nominating, and Executive Resource & Compensation, aligning with governance standards.

Business Segments

Energy Operations

Sembcorp's energy operations comprise its renewables and gas and related services segments, delivering a gross portfolio capacity of 27.4 , with renewables accounting for 19.3 . These activities span 11 countries, emphasizing a transition toward low-carbon solutions while maintaining reliable baseload . The renewables segment focuses on , , and systems to address intermittency and support grid stability. operations include large-scale projects such as Singapore's Solar Farm, commissioned in 2025 with 118 MWp capacity, marking the nation's largest ground-mounted . In , Sembcorp acquired a 300 MW portfolio from ReNew Power in October 2025, elevating its gross renewable capacity there to 6.9 , including developments under . and assets contribute to diversified generation, while has advanced through innovations like vertical battery stacking at , boosting capacity from 285 MWh to 326 MWh in partnership with Singapore's Energy Market Authority for enhanced grid resilience. Operations extend to , , the , and the , with a pipeline including a 150 MW and 300 MWh battery hybrid project awarded in in May 2025. Complementing renewables, the gas and related services segment operates 8.0 of primarily gas-fired power plants, utilizing combined cycle technology for improved efficiency and lower emissions compared to traditional systems. Facilities are located in , , , , , the UAE, and the , often integrating power generation with for dual-output efficiency. In , Sembcorp holds the largest share of the market as the pioneering commercial importer and retailer of piped , supplemented by () imports to access global supplies and mitigate price volatility. This segment ensures stable supply to industrial and municipal customers, with ongoing upgrades prioritizing cleaner fuels and operational optimizations. Forward-looking initiatives include conditional approval in October 2025 to import hydropower-dominated renewable electricity into Singapore, targeted for operations around 2035, further diversifying the energy mix.

Urban Solutions and Development

Sembcorp's Urban Solutions and Development operates as a master developer specializing in the transformation of raw land into sustainable industrial parks, commercial hubs, and integrated townships across Asia, with a focus on supporting urbanization and economic growth through end-to-end infrastructure and property solutions. The segment's Urban Growth Suite encompasses land preparation, design of green (e.g., parks), blue (e.g., water systems), and grey (e.g., roads) infrastructure, development of green-certified buildings such as ready-built factories, warehouses, high-tech parks, and residential areas, as well as ongoing asset management emphasizing environmental, social, and governance factors. Over three decades, these activities have spanned 14,800 hectares across 24 projects in Vietnam, China, and Indonesia, attracting approximately US$58 billion in investments from over 1,000 tenants including multinational corporations and generating more than 414,000 jobs. Key projects include the Industrial Parks, where Sembcorp has strengthened its portfolio through expansions announced in May 2024, covering integrated developments with ready-built facilities for manufacturing and logistics. In January 2025, the company signed an agreement with India's state to develop a plant alongside an , integrating low-carbon energy infrastructure to attract sustainable industries. These initiatives leverage public-private partnerships and strategic site selection to provide market access, utilities, and future-ready designs, often in collaboration with governments to spur industrialization. In August 2024, Sembcorp outlined a strategic plan to position itself as Asia's leading low-carbon developer, targeting expansion of its land bank to 18,000 hectares and industrial properties to 1.5 million square meters by 2028, with a goal of achieving over 15% in net profit from 2022 to 2028 and a 10% by that year. This shift emphasizes recurring income from managed assets and low-carbon features to meet rising demand for sustainable spaces amid Asia's . The business contributed to a turnaround in the broader Integrated Urban Solutions segment, which reported a net profit before exceptional items of S$169 million in 2024, supporting overall company net profit growth of 7% to S$1.01 billion.

Marine and Other Legacy Businesses

Sembcorp Industries' marine business, conducted primarily through its subsidiary Sembcorp Marine Ltd, originated from Jurong Shipyard, established in 1963 as one of Singapore's early facilities, and evolved into a provider of integrated solutions for and , including rig building, ship repair, and conversions. The segment expanded globally but encountered prolonged challenges starting in 2015 amid a severe downturn in the industry driven by falling prices and reduced activity. By 2020, exacerbated by the and price collapse, Sembcorp Marine required significant recapitalization to address liquidity strains and high debt levels. On June 8, 2020, Sembcorp Industries announced a S$2.1 billion recapitalization of via a 5-for-1 at S$0.20 per share, with Industries subscribing up to S$1.5 billion through loan offsets and providing sub-underwriting support of up to S$0.6 billion. This was followed by a , executed as a distribution-in-specie of Industries' stake in the recapitalized Marine to its shareholders—approximately 427 to 491 Marine shares per 100 Industries shares—allowing both entities to pursue independent strategies without cash outlay from shareholders. The , approved by shareholders in extraordinary general meetings, was completed on September 17, 2020, enabling Industries to concentrate on and while Marine addressed its sector-specific recovery. Post-demerger, Industries retained no ownership in Marine, which later merged with Keppel & Marine in 2022 to form a larger entity focused on offshore capabilities. Beyond marine, Sembcorp Industries divested several other legacy operations to streamline its portfolio toward sustainable growth areas. In November 2020, it completed the sale of its business in , involving 100% stake divestment by a subsidiary, as part of exiting non-core utilities. Earlier, in September 2019, the group divested its Australian subsidiary Sembcorp Australia, focusing away from regional coal-fired assets. More recently, in March 2025, Industries sold its arm Sembcorp Environment (SembEnviro) to Indonesia's TBS Energi for S$405 million, a 43% premium over , shedding exposure to energy-from-waste plants amid a strategic pivot to renewables. These transactions, including ongoing reviews of assets like municipal holdings, reflected a broader effort to recycle capital from underperforming or cyclical legacy units into higher-return opportunities in clean and urban solutions.

Global Operations

Singapore-Based Activities

Sembcorp Industries, headquartered in , conducts core operations in energy generation and integrated urban solutions within the country. Its energy portfolio includes 5,549 MW of capacity, encompassing gas-fired plants on that provide stable baseload power to industrial users. In renewables, Sembcorp operates Singapore's largest ground-mounted solar project, the 118 MWp Sembcorp Jurong Island Solar Farm, spanning 60 hectares across six plots on interim vacant land, announced in 2025. It also manages the Sembcorp Tengeh Floating Solar Farm, Singapore's first inland floating solar installation with over 122,000 panels covering 45 hectares. Additionally, Sembcorp runs Southeast Asia's largest utility-scale energy storage system on Jurong Island, enabling rapid grid response and integration of intermittent renewables. In October 2025, it received conditional approval from the Energy Market Authority to import renewable electricity from Sarawak via subsea cables, marking Singapore's first large-scale 24/7 firm renewable energy import project. Sembcorp's urban solutions segment has supported Jurong Island's industrial developments since 1995, delivering utilities, , and service corridors for sustainable infrastructure. These integrated services optimize energy, water, and , contributing to resilient ecosystems in line with 's goals. The company pioneered natural gas importation to , establishing reliable supply chains for its gas-related services.

Asia-Pacific Expansions

Sembcorp Industries has pursued significant expansions in and across markets, leveraging its expertise in , and projects to capitalize on regional demand for sustainable . Key initiatives include entry into new Southeast Asian markets and operations in , where the company operates as a leading across 18 states with a balanced portfolio of assets. These efforts align with Sembcorp's target of achieving 25 gross installed renewables capacity by 2028, emphasizing and brownfield developments in high-growth areas. In , Sembcorp bolstered its portfolio through the acquisition of ReNew Sun Bright, a 300 MW solar facility in , for S$246 million (approximately $190 million) announced in October 2025, increasing its global renewable capacity to 19.3 . Earlier, in May 2025, it secured a letter of from for a 150 MW paired with 300 MWh battery energy storage in the 1.2 tender, marking its second such initiative. The company maintains over 1.4 in greenfield or brownfield projects here, building on its entry as India's first . Sembcorp entered Indonesia's utility-scale sector in March 2024 with initial s, followed by the January 2025 launch of a -plus-battery system in partnership with state-owned PLN Renewables, enhancing its Southeast Asian footprint. In the , it initiated renewable expansion in February 2025 with a , amid broader Southeast Asian pushes including a May 2025 partnership with Chemicals to develop green industrial ecosystems involving billions in investments. Further diversification includes a October 2025 conditional approval to import renewable electricity from , , primarily , with operations slated for 2035 to supply via undersea cables. In Vietnam, Sembcorp faces challenges from regulatory shifts affecting 173 renewable projects worth , including tariff disputes impacting its investments alongside other Singaporean firms. Operations in , such as Fuzhou water treatment, represent established presence rather than recent scaling, while Australian activities remain limited in disclosed expansions.

Middle East Ventures

Sembcorp has established a presence in the primarily through independent water and power projects (IWPPs) and developments, focusing on and the (UAE). These ventures emphasize power generation, , and , aligning with regional demands for reliable utilities and energy diversification. Operations date back to 2006, with investments exceeding US$1 billion in key facilities. In , Sembcorp operates the IWPP, a gas-fired combined-cycle facility with capabilities. The plant, developed with an investment of approximately US$1 billion, supplies 465 MW of power and 15 million imperial gallons of water per day under a renewed 10-year power and water purchase agreement awarded in September 2025. Sembcorp holds a 40% stake through its subsidiary Sembcorp Salalah Power & Water Company, contributing to a broader Omani portfolio exceeding 1 GW of gas and renewable assets. Sembcorp's renewable push in includes the Manah II Solar Independent Power Project, a 588 utility-scale farm in Manah that commenced commercial operations on May 4, 2025, four months ahead of schedule. This marks Sembcorp's inaugural renewables development in the and its largest project globally, supporting Oman's goal of 30% by 2030 while generating enough power for over 110,000 households annually. The project underscores Sembcorp's shift toward low-carbon assets in the region. In the UAE, Sembcorp's activities center on the Fujairah F1 IWPP, where it assumed operations in 2006 following a 40% stake acquisition. A US$200 million expansion completed in 2015 boosted desalination capacity by 30% to 590,991 cubic meters per day, making it one of the largest plants in the and incorporating hybrid multi-stage flash and technology for efficiency. An earlier 2010 expanded total UAE desalination capacity from 100 to 130 million imperial gallons per day. These assets provide baseload power and water security in . While Sembcorp's investor materials reference potential in , including qualification for renewable bids in 2024, no operational projects have been confirmed there as of late 2025, with efforts remaining at the development or tender stage.

Other International Presence

Sembcorp maintains a significant presence in the through its subsidiary Sembcorp Energy , which operates one of the largest portfolios of rapid-response, flexible gas-fired power stations in the country, supporting grid stability and the transition to . These assets, located across 45 sites, provide balancing services to the national grid by delivering electricity during periods of high demand or renewable intermittency. A key asset is Wilton International, a 2,000-acre industrial site in , , where Sembcorp supplies on-site customers with power, steam, and utilities derived from sources including waste-to-resource processes and . The site facilitates industrial development by offering development land, energy infrastructure, and utilities, contributing to regional economic activity. In August 2025, Sembcorp Utilities (UK) Limited secured an agreement with NatPower to host the UK's largest battery energy storage system on a 32-acre portion of Wilton International, enhancing storage capacity for renewable integration. Sembcorp's UK operations trace back to 2003, with the company marking 20 years of activity by 2023 and focusing investments on greener infrastructure, such as battery storage and low-carbon energy solutions. These efforts include commissioning 60 MW of ultra-fast battery storage across three 20 MW sites by 2019, monitored from a central facility in . Beyond , Sembcorp's historical logistics arm extended to , with over 70 locations across , , and the as of earlier reports, though core current operations emphasize and urban solutions in established markets like the . No active projects in or are prominently featured in recent disclosures, reflecting a strategic focus on , the , and select European assets.

Financial Performance

Sembcorp Industries exhibited volatile financial performance in the , characterized by cyclical revenues from its and energy segments, with net profits swinging from S$793 million in 2010 to significant losses of approximately S$1.5 billion in 2016 due to impairments in the oil and gas sector. Revenue during this period hovered between S$5 billion and S$6 billion annually, reflecting exposure to commodity price fluctuations and project-based marine contracts. Post-2016 restructuring, including cost controls and divestments of non-core assets, profitability recovered, with net profit before exceptional items reaching S$456 million in 2019. The divestment of the marine business in 2022 marked a pivot to stable energy and urban solutions operations, reducing revenue volatility but enhancing margins through higher gas and power contributions. From 2020 to 2024, revenue stabilized at S$6-8 billion, while net income attributable to shareholders rose from S$279 million in 2020—impacted by COVID-19 disruptions—to S$1.004 billion in 2024, driven by elevated energy prices and renewable asset contributions. Key metrics underscore this trend toward resilience:
YearRevenue (S$ billion)Net Income (S$ million)EBITDA (S$ million)Dividend per Share (S$)
20206.412791,0090.04
20217.838481,6180.10
20227.049422,0810.18
20236.422,0650.19
20246.152,0640.20
Data reflects total operations, with EBITDA margins improving to around 30-33% in recent years from sub-20% earlier, indicating gains. Dividend payouts progressively increased, signaling confidence in sustainability, with total dividends rising from S$0.04 per share in 2020 to S$0.20 in 2024. (ROE) trended upward post-2020, recovering from negative territory in loss-making years to approximately 15-20% by 2023-2024, supported by debt reduction and asset optimization. Debt-to-equity ratios declined from peaks above 1.5x in the mid-2010s to below 1x recently, reflecting amid stable earnings. These metrics highlight a shift from high-volatility, capital-intensive operations to predictable, dividend-oriented performance aligned with strategies.

Recent Results and Market Resilience (2024-2025)

In fiscal year 2024, Sembcorp Industries reported revenue of S$6.42 billion, a decline of 8.9% from S$7.04 billion in 2023, primarily due to lower gas and related services contributions amid softer market conditions. Net profit rose 7% to S$1.02 billion, supported by higher earnings from integrated urban solutions and resilient gas operations, with the company declaring a total of 23.0 cents per share, including a final dividend more than double the prior year at 17 cents. This performance demonstrated resilience against geopolitical tensions and economic volatility, bolstered by diversified revenue streams and strong cash flows from initiatives. For the first half of 2025 ended June 30, revenue fell 8.3% to S$2.94 billion from S$3.21 billion in the comparable 2024 period, reflecting normalized pricing in gas segments and project phasing in urban solutions. profit stood at S$536 million, a slight 1% decrease from S$543 million, yet the company highlighted portfolio defensiveness and hiked its interim dividend, underscoring operational stability amid macroeconomic headwinds. resilience was attributed to steady contributions from renewables capacity expansion to 18.9 gross and prudent capital management, with expectations of sustained gas segment performance in the second half despite contract spread pressures. Sembcorp's share price exhibited volatility but maintained resilience, trading at S$6.46 on October 24, 2025, after peaking at S$7.85 on July 22, 2025, with a of approximately S$8.41 billion as of early September. The stock's performance reflected investor confidence in the company's deleveraged , robust generation, and strategic focus on low-carbon assets, enabling growth and recycling amid fluctuations. Overall, Sembcorp navigated 2024-2025 challenges through earnings diversification and disciplined execution, positioning it favorably for long-term value creation in a transitioning landscape.

Sustainability Efforts and Environmental Impact

Transition to Renewables and Achievements

Sembcorp initiated a strategic pivot toward in the early 2020s, aiming to diversify from its traditional fossil fuel-based operations amid global decarbonization pressures. In , the company announced plans to quadruple its gross installed renewables capacity from 2.6 in 2020 to 10 by the end of 2025, with sustainable solutions targeted to comprise 70% of profits by that year, up from 40%. This target was met ahead of schedule, as Sembcorp reported achieving 10 early and expanding its gross renewables portfolio to 13.1 by December 2024, driven by acquisitions, , and development in , hydro, and storage assets across , the , and the . The 2023-2028 strategic plan further accelerated this transition, setting a goal of 25 gross installed renewables by 2028 while emphasizing regional of clean power to support grid decarbonization. Notable achievements include securing conditional approvals from Singapore's Energy Market Authority in 2025 for importing up to 1 of from , , and 1.2 from , totaling 2.2 to bolster Singapore's renewable supply. In , Sembcorp acquired full ownership of Renew Sun Bright in 2025, enhancing its solar portfolio amid rapid additions. Operations span 19.3 gross as of 2025, including under-construction projects assuming 100% ownership equivalents. Key milestones underscore operational progress, such as piloting battery stacking technology at its system in 2025 to optimize grid flexibility, and signing a 15-year PPA in November 2024 to supply 58.5 MWp of to data centers. In , Sembcorp accounts for over half of the nation's 2025 solar capacity target, establishing it as the largest local developer and a pivotal player in Southeast Asia's energy shift, though profit contributions from renewables have lagged behind earlier projections due to market volatilities.

Criticisms of Fossil Fuel Reliance and Emissions

In November 2022, Sembcorp Industries sold its subsidiary Sembcorp Energy Limited (SEIL), which operated two coal-fired power plants with a combined of 2,688 megawatts, to an Oman-led for $1.5 billion. The transaction included a deferred note from Sembcorp to the buyers, effectively providing financing that maintained financial exposure to the assets' operations. Critics, including the Asia Financials Investors Initiative (AFII), argued this constituted greenwashing, as it allowed Sembcorp to de-consolidate the plants' operational emissions from its while the environmental impact persisted through ongoing financial ties. The sale enabled Sembcorp to report a reduction in its intensity from 510 kg CO2e per megawatt-hour to a 320 kg CO2e/MWh, helping it meet targets tied to its sustainability-linked bonds and avoid associated penalties. However, AFII contended that Scope 1 and 2 emissions from the coal plants should remain attributable to Sembcorp until the loans were fully repaid, highlighting weaknesses in sustainability-linked financing frameworks that prioritize reported metrics over actual emission reductions. This maneuver was described by analysts as "carbon footprint arbitrage," shifting accountability without diminishing global dependence or the plants' output of approximately 15-20 million tonnes of CO2 annually prior to the sale. Beyond the India divestment, environmental groups have criticized Sembcorp's broader portfolio for sustained reliance on and residual assets, which accounted for over 70% of its generation capacity as of 2022 and contributed to Scope 1 emissions exceeding 10 million tonnes of CO2e in prior years. In , Sembcorp's gas-fired plants, including those at Sakra and , continue to form a backbone of the nation's power grid, with critics noting that such infrastructure locks in pathways amid rising global scrutiny of and CO2 outputs from gas operations. Reports from 2023 pointed to loopholes in Sembcorp's emissions targets, which exclude Scope 3 financed emissions from assets like the plants, potentially understating total liability. These practices have drawn investor pushback, with calls in for shareholders to reject the deal at Sembcorp's , emphasizing that does not equate to causal reduction in atmospheric emissions or alignment with net-zero principles. While Sembcorp maintains the supports its renewables pivot, detractors from outlets like the argue it exemplifies how asset sales can distort green credentials without addressing the root reliance on high-emission fuels in emerging markets.

Brazilian Corruption Scandal

In 2019, Brazilian authorities raided the offices of Estaleiro Jurong Aracruz Ltda (EJA), a of Sembcorp Marine (now part of Seatrium Limited following its 2023 merger with Keppel Offshore & Marine), as part of Operation Lava Jato, an anti-corruption probe uncovering bribes paid to secure contracts with , Brazil's state-owned oil company. The investigation focused on allegations that Sembcorp Marine employees facilitated payments totaling millions of dollars to Brazilian intermediaries and officials between approximately 2010 and 2014 to obtain rig-building and shipyard contracts amid ' procurement scandals. Singapore's (CPIB) launched a parallel inquiry, leading to charges on March 28, 2024, against former Sembcorp CEO Wong Weng Sun and Senior Vice-President Lee Fook Kang for offenses involving bribes paid for the benefit of entities. The charges alleged that the executives approved illicit payments, including through , to influence contract awards, with Sembcorp initially denying any wrongdoing in 2015 when early allegations surfaced. In December 2023, prosecutors dropped related charges against a former Sembcorp employee and , citing insufficient evidence, though authorities proceeded independently. Seatrium, as the successor entity, reached settlements in 2025 to resolve the matter: on July 30, it agreed to a deferred prosecution agreement with Singapore's Attorney-General's Chambers, paying a $110 million financial penalty for offenses committed by its predecessors in . Separately, Seatrium committed to $168 million in payments to Brazilian authorities and $73 million to Singapore regulators, addressing liabilities from the decade-old probe into bribe-facilitated deals. In August 2025, Keppel O&M filed a $53 million claim against Seatrium, seeking indemnification for shared corruption-related exposures from their pre-merger operations in . These resolutions highlighted systemic risks in 's oil sector during the Lava Jato era, where foreign firms faced pressure from entrenched intermediary networks, though Seatrium maintained the conduct was isolated to former individuals and not reflective of current governance.

Commercial Disputes and Regulatory Issues

In 2020, a joint venture unit of Sembcorp in faced criminal and civil proceedings for illegal discharge of , resulting in fines and settlements totaling S$54 million for the group's share, with no further financial impact after conclusion. Sembcorp's subsidiary, Infra Wind Limited, initiated in 2023 against over alleged defaults in a project contract, leading to a court lawsuit in June 2024 to block 's asset sales in pending resolution. In May 2024, filed a in the same , escalating the contractual dispute. A settled claims in May 2025 with Universal Terminal (S) Pte. Ltd. over a 2020-terminated gasoil supply and storage agreement, originally stemming from Trading's defaults amid its collapse. Separately, in October 2024, Sembcorp announced settlement of a $50.9 million against founder Lim Oon Kuin and his children related to the same trading fallout. Regulatory hurdles disrupted a March 2025 agreement for Sembcorp to acquire stakes in gas assets from Conrad Asia Energy, as required approvals from Indonesian authorities were not obtained, leading to termination. In , Sembcorp special purpose vehicles challenged Telangana's deviation charges regulations in court, securing interim relief from the in July 2025 against penalties on power generation variability. An arbitral tribunal in 2025 awarded Sembcorp India Limited a net receipt of 198 rupees in a long-pending dispute with NCC Limited over a power project.

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