ENGIE, a France-based energy company, is set to develop a 22 MW solar photovoltaic project for Al Jouf Cement Company in Saudi Arabia. This initiative will be located near Turaif in the Northern Borders Province.
A power purchase agreement (PPA) has been signed between the two companies, covering an area of 420,000 square meters. This solar project aims to reduce carbon emissions by approximately 1.48 million tons over 25 years.
The project will enable Al Jouf Cement to generate renewable energy on-site, decreasing its reliance on conventional energy sources and stabilizing energy costs under a fixed-rate PPA. The solar power cost will be more economical than Al Jouf’s current power sources and potentially cheaper than industrial electricity if connected to the national grid, providing about 25% of the company’s electricity needs.
Al Jouf Cement will not face any financial burden for this project, as it requires no capital or operational expenses from the company. Additionally, it is expected to save SAR3.6 million (~$0.96 million) annually in electricity costs.
ENGIE will manage the entire project lifecycle, from design and development to construction and maintenance, incorporating advanced technology with both rooftop and ground-mounted installations to maximize energy output.
This initiative supports Saudi Arabia’s drive to diversify its energy resources and decarbonize industries, aligning with the Vision 2030 strategy to reduce dependence on fossil fuels and transform the economy.
Pierre Cheyron, ENGIE’s Managing Director for Energy Solutions in the AMEA region, highlighted the project’s potential impact, stating it demonstrates the transformative power of renewable energy in energy-intensive industries.
Recently, the Saudi Power Procurement Company invited bids for solar and wind projects totaling 4,500 MW. Earlier this year, ENGIE also signed a loan agreement with the Asian Development Bank for a 400 MW solar project in Gujarat, India.
