Keppel Corporation - Annual Report 2021 - Vision 2030 in Action Collaboration and Integration

COLLABORATION
AND INTEGRATION

Guided by Vision 2030, Keppel’s business units are increasingly coming together to hunt as a pack for opportunities across the Group’s focus areas. As OneKeppel, we are harnessing the Group’s diverse capabilities to create innovative solutions that create both value for stakeholders and competitive advantage for Keppel.

HUNTING AS A PACK

ONEKEPPEL TEAMS
Keppel continues to invest in developing systems and structures to drive integration across the Group. Synergistic platforms, known as OneKeppel Teams, are being set up to integrate talent and expertise from various business units and functions, putting Keppel in a formidable position to seize opportunities quickly and scale up in its Vision 2030 focus areas.

OneKeppel Teams adopt a cradle-to-maturity approach in evaluating opportunities across the projects’ development stages, whether they are investments by the Group’s operating entities, private funds, listed REITs or business trust. The diverse structure of the Teams further ensures that the perspectives and interests of the Group’s varied stakeholders are well considered in any investment decision, contributing towards win-win outcomes and greater value creation.

OneKeppel Data Centre (DC) and OneKeppel Infrastructure were the first such teams to be formed in 2021, to focus respectively on investments in data centres and various types of infrastructure, including renewables, decarbonisation and environmental solutions. The OneKeppel DC team for instance, brings together investment personnel and expertise from Keppel Data Centres and Keppel Capital. The team is further guided by an advisory committee comprising senior management from various parts of the Group.

The pooling of talent and resources also enables Keppel’s business units to optimise strategic execution and resource allocation, as well as enhance their operations. Through hunting as a pack, these Teams can converge potential deals across business units into a single pipeline for evaluation, thus minimising the loss of opportunities. Importantly, the OneKeppel approach allows the Group to undertake more complex deals, including those with hybrid structures, by drawing on the strengths of each business unit.

OneKeppel Teams will play increasingly significant roles in fuelling Keppel’s integrated value chain, unleashing synergies and giving business units access to new profit pools that may not be available to them individually. Diverse opportunities arising from this cross-fertilisation of business units and their talents will help to develop the Group’s human capital and allow Keppel to accelerate growth.

PACKING A PUNCH

SUSTAINABLE DATA CENTRE SOLUTIONS

As a leading provider of data centre solutions, Keppel continues to push the envelope for the holistic design and development of more energy‑efficient and greener concepts, such as high-rise data centres or floating data centres, which we plan to launch in 2022, subject to regulatory approval.

The launch of Vision 2030 has taken Keppel even further on this journey to explore how we can integrate the Group’s various sustainable products, services and capabilities to help governments and businesses reduce their energy expenditure and carbon footprints.

IMPROVING ENERGY EFFICIENCY

We are exploring the centralisation of utilities to help decarbonise data centres by reducing energy intensity and powering them with green electrons. This involves deploying the Group’s proven district cooling systems (DCS) to cool data centres, as well as providing reliable sources of green energy for the assets.

By aggregating energy loads across several buildings, Keppel’s DCS facilities can greatly reduce the overall capacity requirements and costs for cooling larger scale developments, achieving up to 40% in energy savings compared to standalone systems. We are also exploring the procurement of renewables, and zero-carbon energy alternatives including hydrogen to power the data centres.

It is estimated that Keppel’s centralised utilities platform can potentially improve the Power Usage Effectiveness of data centres by as much as 20-30%.

BOOSTING CONNECTIVITY

In addition to lowering their carbon footprint, our data centre customers can also benefit from enhanced connectivity and network diversity by tapping the Group’s investment in the Bifrost Cable System. This cable system is the world’s first subsea cable system that directly connects Singapore to the west coast of North America via Indonesia through the Java Sea and Celebes Sea.

PROVIDING END-TO-END SOLUTIONS

The Group’s competencies in creating and operating a variety of real assets present a unique and attractive proposition to financial investors. For example, the Group can tap third-party funding for the development of real assets through our private funds, and recycle them through the Keppel-managed REITs and business trust when they have been de-risked and are generating stable cash flows.

Harnessing diverse capabilities from across the Group allows Keppel to deliver innovative solutions that differentiate us from the competition. Keppel’s versatile end-to-end model can also be used to help commercialise other innovative concepts such as energy-efficient floating data centre parks and climate-resilient nearshore developments or “floating cities”.

VISION 2030 IN ACTION

Keppel is advancing its transformation to be one integrated business providing solutions for sustainable urbanisation by driving first collaboration and increasingly integration across business units and functions.

HUNTING AS A PACK

$1.1b

PACKING A PUNCH

DRIVING INTEGRATION IN THE DATA CENTRE BUSINESS

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