Al Jouf Cement Company has entered an agreement with the French company Engie to construct and operate a solar power plant at its factory site in Turaif city.
The plant, with a generation capacity of 22 megawatts (MW), is expected to supply nearly 25 percent of the company’s electricity needs once operational, the company said in a statement to the Saudi stock exchange on Tuesday.
Al Jouf Cement will purchase the electricity generated from the plant for 25 years, starting from its operational commencement.
The cost will be lower than the current production costs from its heavy fuel oil power plant and cheaper than the industrial electricity rates if connected to the national grid.
No financial details were given. However, the company said it will not incur any financing for the project, as it will not bear any capital or operational expenses.
The plant will have a positive environmental impact by reducing carbon emissions by 1.48 million tonnes, supporting the government’s efforts to cut emissions in energy-intensive industries such as cement.
(Reporting by P Deol; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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