GlobalFoundries and Keppel sign Multi-Year Power Purchase Agreement

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GlobalFoundries will be a long-term off-taker of electricity from the new Keppel Sakra Cogen Plant, Singapore's first energy-efficient and hydrogen-ready combined cycle power plant.

gf.com/, Jan. 09, 2024 – 

SINGAPORE, JANUARY 09, 2024 – GlobalFoundries (NASDAQ: GFS) (GF) and Keppel Ltd's Infrastructure Division (Keppel) today announced the signing of a multi-year power purchase agreement (PPA) for the provision of electricity at GF's Singapore site, expected to commence on 1 May 2024.

The multi-year agreement will see Keppel provide 150 to 180 MW of electricity each year to power GF's Singapore operations. This agreement will facilitate procurement of GF's power supply as its Singapore campus continues to ramp production following the launch of its latest Singapore Expansion facility in September 2023.

GF is expected to be a significant long-term off-taker of electricity from the upcoming Keppel Sakra Cogen Plant (KSC), as it is expected to contract about 25% of KSC's total generation capacity for more than 15 years when the plant is operational.

Scheduled for completion in 2026, KSC is expected to be one of the most advanced and energy-efficient power plants in Singapore. Powered by electricity from KSC, it is expected that GF will be able to reduce emissions from its Singapore site by more than 10% or up to 70,000 tonnes of CO2 emissions per annum, compared to the status quo. Furthermore, with ability to use hydrogen as part of its feedstock, it is expected that KSC will be able to provide GF with a resilient source of even lower carbon power in future.

As part of GF's commitment to sustainability, GF has preserved the option to switch a portion of the electricity supplied by Keppel to renewable energy, such as solar and wind, when these sources become more readily available in Singapore.

Mr Tan Yew Kong, SVP and GM, GlobalFoundries Singapore site, said, "We are delighted to begin our partnership with Keppel. We are confident that this partnership will help us ensure stable energy availability and maintain our competitive advantage, as we continue to deliver on our commitments to meet the demand for GF-manufactured essential chips.

"Environmental performance is built into our Singapore facility, and we take a long-term perspective to integrate resource-efficient systems and processes into our operations. As more options for renewable energy become available in the future, we are committed to adopting more solutions to further decarbonize electricity generation, as well as invest in the necessary infrastructure to execute on our global Journey to Zero carbon strategy."

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