HG Metal Manufacturing Ltd (“the Group"), a leading steel distributor and fabricator based in Singapore, has entered into a Power Purchase Agreement (“PPA”) with LYS Energy Group (“LYS”), to build and operate a rooftop grid-tied solar photovoltaic (PV) system at the Group’s premises located at 28 Jalan Buroh.
The 936.84kWp solar power plant, made up of 2,059 JA Solar Modules, is estimated to achieve an average annual output of 1,031.5MWh over the next 20 years and is expected to be completed by Q3FY 2021.
Based on the current production output and business activity of the Group, the energy generated by the solar power plant is expected to account for 60% to 70% of the Group’s annual energy consumption requirements, significantly reducing the Group’s reliance on conventional electricity. With rising electricity tariffs, the switch is expected to result in cost-savings up to S$3.1M over the project duration of 20 years.
The new initiative also will enable the Group to transition towards cleaner and greener energy by shifting away from utilizing energy generated from non-renewable resources such as fossil fuels and reduce the carbon footprint of our business activities. The solar energy generated through this initiative would help the Group to reduce the equivalent of approximately 9,840 tons1 of carbon (CO2) over the next 20 years.
Under this initiative, the solar PV system will be also registered under Energy Market Authority (EMA) scheme’s Enhanced Central Intermediary Scheme (“ECIS”), to enable the export of the unconsumed excess of energy produced by the PV system into the national electricity grid.
Moreover, selling back the excess of solar-generated electricity will enable the Group to contribute to Singapore’s energy generation mix towards cleaner energy envisioned by the EMA.
Mr. Shin Taeyang, Group CEO of HG Metal, said, “We are pleased to partner with LYS Energy Group, a well-established and reputable Independent Power Producer (IPP) in Singapore, to work towards reducing our reliance on conventional electricity generated from non-renewable resources. This initiative will allow HG to not only enjoy cost savings but also reduce the carbon footprint of our existing business operations, creating a win-win situation for all the stakeholders involved.
As a major player in the steel industry, HG aims to achieve continual improvements in our efforts to limit the industry’s impact on the environment and work towards our sustainability goals by utilizing renewable sources of energy to power our business operations. HG eventually aims to achieve carbon neutrality by integrating such low carbon initiatives and contribute towards Singapore’s goal of lowering carbon emissions by 2030.”
Mr. Lionel Steinitz, Founder and Chief Executive Officer of LYS Energy Group, said, "LYS Energy Group is delighted to be partnering with a forward-thinking and committed leading organization such as HG Metal to play our respective roles in the energy transition and increase our involvement in the national renewable energy plan.”
This partnership is another milestone that further acknowledges the appreciation of our holistic and tailored approach to sustainable development and our robust technical expertise that allows us to innovate and deploy top-notch solar PV systems across Singapore and the region.
Together with HG Metal, we trust that this collaborative effort will spread to the rest of the industry, demonstrate that alternative sources such as solar energy are reliable and adapted for energy-intensive industries such as the steel industry, and encourage more local businesses to make the transition to a decarbonized activity.”