Riyadh Cement Company has signed an agreement with renewable and sustainable IPP specialist Samana Energy to purchase solar-generated electricity for a 25-year period. The cement company said it expects to make average annual payments of about US $1.6mn, excluding value-added tax, over the contract period, as per the terms of the agreement.
The electricity will be purchased at a cost lower than its current electricity generation costs and below the cost of electricity supplied by Saudi Energy Company, said Riyadh Cement in its filing to Saudi bourse Tadawul.
Riyadh Cement said that it would not be required to provide financing for the project and would incur no capital or operating expenditure, subject to obtaining the necessary licences and approvals from the relevant authorities.
Operations for the power generation system are expected to begin in Q4 2027, with cost savings 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, Riyadh Cement explained.
The company also signed a partnership deal with China’s Tianjin Cement Industry Design & Research Institute to implement a digital transformation project aimed at improving operational efficiency and productivity. The 24-month contract covers the implementation of the company’s ‘Light House Project’, which will use digital technologies and Industry 4.0 applications to optimise production processes, reduce costs and improve operational performance and sustainability.
The project includes digital transformation and automation, process optimization, artificial intelligence, predictive maintenance and energy-efficiency measures, Riyadh Cement explained. The firm said the project forms part of its broader operational and digital transformation strategy and aims to boost its competitive position and support its long-term strategic objectives.
Additionally, the company has partnered with Cachapuz – Weighing & Logistics Systems for the supply, installation, and commissioning of advanced technology solutions for logistics and dispatching automation. This deal is said to further enhance the company’s dispatching operations through digital solutions and advanced safety and compliance technologies.
Hence then, the article about riyadh cement inks long term power deal with samana energy was published today ( ) and is available on ME CONSTRUCTION NEWS ( United Arab Emirates ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Riyadh Cement inks long-term power deal with Samana Energy )
Also on site :