Riyadh Cement Company announces the award and signing of a 25-year agreement with Samana Energy for the purchase of solar energy.
Announced on 14 September, Riyadh Cement Co. signed a 25-year contract to purchase energy from SAMANA Energy. The average annual payments under the agreement are expected to be approximately SAR 6 million per year, excluding VAT, throughout the contract term. The agreement is based on purchasing energy from SANAMA Energy at a cost lower than the Company’s current electricity generation cost and lower than the cost of Saudi Energy Company. Riyadh Cement Company will not be required to provide financing for the project, as it will not incur any capital or operating expenditures, subject to obtaining the necessary licenses and approvals from the relevant authorities.
The power generation system is expected to commence operations in the fourth quarter of 2027. Based on the Company’s initial estimates, the impact of cost savings is expected to materialise gradually from the first year of operations, with the actual financial impact to be determined based on the energy prices applicable to the energy consumed from the project at that time.
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