KSA’s “Al Jouf Cement” (3091) and France’s “Engie” penned an agreement to build a solar power plant, with a 22 MW generation capacity.
This supports the country’s efforts to preserve the environment in the energy-intensive cement sector.
Details
Al Jouf Cement noted that the plant will be operating in Turaif City for 25 years.
The company also said that it will not incur any debt to implement the project, and won’t bear any capital or operational expenses.
So what
Al Jouf Cement, which was established in 2007, will purchase the electricity produced by the plant for 25 years, starting from the date the plant kicks off operations,
The generated clean energy saves the company money compared to what it currently spends on electricity production from its heavy fuel-powered plant
The firm noted that it will also be cheaper than the current average electricity price for the industrial sector, should it connect to the Saudi Electricity Company.
Al Jouf Cement expects that the plant, once completed, will contribute about 25% of its electrical needs.
Some context
The agreement with “Engie,” a global leader in providing low-carbon energy solutions and services, aligns with “Vision 2030” and the “Saudi Green Initiative,” both aimed at slashing the Kingdom’s carbon emissions.
It also aligns with Al Jouf Cement’s strategy to support renewable energy consumption.
Now what
Al Jouf Cement said that the positive impact of cost reduction will gradually be reflected starting from the first year of the plant’s operation, according to its initial estimates.
It added that the financial impact will be determined based on fuel prices at that time.
Compared to the current industrial electricity tariff from Saudi Electricity, the positive impact is expected to amount to SAR 3.6 million annually.
The company noted that the project will offset some 1.5 million tons of carbon emissions.
