Logo of Al-Jouf Agricultural Development Co.
Al-Jouf Agricultural Development Co. awarded and signed a 25-year solar energy purchase contract with French energy firm, Engie, according to a statement to Tadawul.
The agreement will be implemented at the company’s Busaita-base Al Jouf Agricultural Development Complex that includes factories for producing olive oil, pickles, and the French fries, with a capacity of 8 MW, which will be merged with the currently used power resources.
The contract’s average payment will reach SAR 2.9 million per year for the whole contract term for the purchase of solar energy.
The agreement is based on purchasing solar energy from Engie as per the actual consumption of the energy produced at a lower cost than the actual current production cost.
Al-Jouf Agricultural indicated it will not need any financing to implement the project as it will not incur any capital or operating expenses.
Construction works will likely commence on Sept. 30, 2023, with operations to start on Sept. 30, 2024.
According to the initial estimates, the impact of the cost efficiency will gradually appear as of the first year of operations, with the financial impact to be determined as per the fuel prices at that time.
The agreement falls within Vision 2030 and the Ministry of Environment’s strategy aimed at maintaining natural resources, as well as focusing on sustainability and clean energy.
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