SADAFCO signs solar PPA to power 7 facilities with clean electricity

Yellow Door Energy will implement solar power project to supply to SADAFCO facilities in Jeddah, Dammam, Riyadh, Yanbu, Tabuk, and Makkah

Saudia Dairy and Foodstuff Co. (SADAFCO) signed a solar leasing deal — a power purchase agreement (PPA) — with Yellow Door Energy Co. to supply seven of its facilities with clean electricity.

Under the agreement, a 2.9-megawatt solar power project will be implemented to supply SADAFCO’s ice cream and milk factories in Jeddah, the tomato paste factory in Dammam, and the regional distribution center in Riyadh, as well as three warehouses in Yanbu, Tabuk, and Makkah.

The project involves the installation of more than 4,700 solar panels across 13 grid connection points.

SADAFCO said the system is expected to generate approximately 4.9 million kilowatt-hours in its first year, reducing carbon emissions by around 1,830 metric tons.

The project will also provide the ice cream factory with 15% of its clean electricity needs.

Construction is scheduled to begin in February, with completion expected before the end of 2026.

Yellow Door Energy will finance, design, construct, operate, and maintain the solar power plants under the solar leasing agreement.