Sembcorp Industries (SCIL.SI), opens new tab said on Tuesday that it would invest S$700 million ($528.5 million) in its green energy initiatives as the Temasek-backed company navigates through energy transition and growth in its renewables portfolio.

The investment comes at a time when the Singapore-based energy producer is looking to establish itself as a major low-carbon firm to meet rising demand for sustainable facilities.

The investment will be funded through a mixture of operating cash flow, project financing, internal funding and capital recycling, Sembcorp said, as it aims to make its integrated urban solutions segment a major developer of low-carbon industrial parks in Asia.

Sembcorp is also exploring partnerships to develop an asset management platform in a move to further expand and diversify its operations.

"Urban business will continue to grow its presence in Vietnam and Indonesia, explore new markets and optimise its operations in China to improve returns," Sembcorp said.

Analysts have previously shown their appreciation for Sembcorp's energy transition strategy. Maybank analysts had previously said that Sembcorp's near term-earnings might have peaked but "green transition" theme remains intact which de-risks revenue profile.

The firm on Tuesday forecast annual net profit to be "fairly stable" as higher earnings from its gas and related services segment are likely to offset lower contribution from the renewables division.

Earnings from renewables business are expected to fall in the second half, the company said, adding that China's weak macro-economic situation and financial downturn could also negatively affect demand for renewable energy.

Still, completion of a planned maintenance for the co-generation plant in Singapore is expected to support earnings growth for the operations.

The firm's half-year attributable profit from continuing operations came in at S$540 million, compared with S$608 million a year earlier.