Riyadh – Mubasher: Al Jouf Cement Company penned a 25-year agreement with France-based Engie Company on 19 November 2024, according to a bourse filing.
The deal aligns with the Saudi Vision 2030 and the Saudi Green Initiative (SGI) to reduce carbon emissions. It also backs Al Jouf Cement's strategy to enhance the consumption of renewable energy.
Under the agreement, the two entities will construct and operate a solar power plant at the Saudi company's site in Turaif, with a generation capacity of 22 megawatts (MW).
Al Jouf Cement highlighted that the cost will be lower than its current production costs from its heavy fuel oil power plant and lower than the industrial electricity costs if connected to the national grid.
Meanwhile, the solar power plant is expected to contribute approximately 25% of the company’s electricity needs upon completion.
The Tadawul-listed firm will not incur any financing for the project, as it will not bear any capital or operational expenses.
As per Al Jouf Cement’s initial estimates, the positive impact, which is forecast to be SAR 3.60 million monthly, will gradually begin to appear from the first year of operation.
The contract will also have a positive environmental impact by reducing carbon emissions by 1.48 million tonnes, supporting the government’s efforts to preserve the environment in the energy-intensive cement sector.
In the first nine months (9M) of 2024, Al Jouf Cement posted an annual plunge of 30.80% in net profit to SAR 30.61 million, compared to SAR 44.24 million.