Riyadh - Mubasher: Riyadh Cement Company signed a solar power purchase agreement with Samana Energy, a move aligned with Saudi Vision 2030 sustainability goals.
The contract, which spans a duration of 25 years, involves average annual payments estimated at SAR 6 million, excluding value-added tax.
Under the terms of the agreement, Riyadh Cement will purchase electricity at a cost lower than its current generation expenses and the rates provided by the Saudi energy utility.
The project requires no capital or operational expenditure from Riyadh Cement, as the company is not responsible for financing the implementation.
The solar power generation system is expected to commence operations during the fourth quarter (Q4) of 2027.
Riyadh Cement anticipates that the financial impact of cost reductions will appear gradually starting from the first year of operation.
The final financial impact will be determined based on the actual energy prices consumed from the project at that time.
The commencement of the project remains subject to obtaining the necessary licenses and approvals from relevant authorities.
Riyadh Cement confirmed there are no related parties involved in the transaction.
Earlier this week, the Saudi firm penned two agreements with Cachapuz for Weighing and Logistics and Tianjin Cement Industry Design & Research Institute Company Limited (TCDRI).
