Engie Partners with Al Jouf for 22-MW Solar Project

• Engie's solar power pact with Al Jouf Cement marks a pivotal step in sustainable energy, driving down carbon footprints while fostering Saudi Vision 2030's renewable ambitions.

Engie SA has signed a power purchase agreement (PPA) with Al Jouf Cement Company to establish a 22-MW solar power installation at the latter's cement plant in Saudi Arabia's Northern Borders Province. This photovoltaic (PV) system will supply on-site energy, aiding Al Jouf Cement in reducing its carbon footprint while providing predictable energy costs through a fixed-rate agreement.

Engie will manage all aspects of the solar project, from design to maintenance. Al Jouf's CEO, Abdulkarim M Al Nuhayer, emphasized that this partnership not only exemplifies the company's commitment to sustainability but also aligns with Saudi Vision 2030, promoting the use of renewable energy in the industrial sector.

How does Engie's PPA with Al Jouf Cement support sustainability and Saudi Vision 2030?

• Promoting Renewable Energy: The PPA between Engie and Al Jouf Cement showcases a significant move towards renewable energy adoption in Saudi Arabia. By implementing a solar power installation, Al Jouf Cement contributes to the reduced reliance on fossil fuels, aligning with global trends towards sustainable energy sources.
• Reduction of Carbon Footprint: The installation of a 22-MW solar PV system directly supports efforts to minimize greenhouse gas emissions. This initiative aids Al Jouf Cement in achieving its sustainability targets and underscores the importance of corporate responsibility toward environmental stewardship in heavy industries.
• Cost Predictability: The fixed-rate agreement provides Al Jouf Cement with predictable energy costs, which is crucial for operational budgeting. This aspect of the partnership enhances the financial viability of renewable energy projects within the industrial sector, potentially encouraging others in the region to follow suit.
• Support for Saudi Vision 2030: The agreement is a clear manifestation of the goals set forth in Saudi Vision 2030, which emphasizes economic diversification and the transition towards renewable energy sources. The initiative highlights the Kingdom's commitment to increasing the share of renewables in its energy mix, aiming for 58.7 GW of renewable energy capacity by 2030.
• Job Creation and Local Economic Development: As Engie manages the entire project lifecycle, including design and maintenance, the initiative is likely to create local job opportunities in the renewable energy sector. This enhances community engagement and supports the national agenda of bolstering human capital and workforce development in line with Vision 2030.
• Enhancing Competitiveness: By adopting renewable energy, Al Jouf Cement can enhance its competitiveness in the market. Sustainable practices improve the company's brand image, increase customer loyalty, and attract environmentally conscious investors, thereby supporting the long-term economic goals of Saudi Vision 2030.
• Encouragement for Future Investments: The successful implementation of this project may serve as a model for other companies in the region, encouraging further investments in renewable energy. By demonstrating the viability and benefits of solar energy, it can catalyze a broader shift towards sustainability in various sectors.
• Contribution to Energy Security: The solar power project contributes to Saudi Arabia's energy security, promoting self-sufficiency in energy production. This aligns with Vision 2030's aim to develop sustainable energy solutions that reduce dependence on imported fossil fuels.
• Innovation and Technological Advancement: The collaboration with Engie allows Al Jouf Cement to leverage advanced solar technologies, fostering innovation within the industry. By embracing cutting-edge renewable technologies, Saudi Arabia can position itself as a leader in the energy transition, consistent with its long-term vision.
• Inspiring Corporate Sustainability: The partnership sets a precedent for other industrial actors in Saudi Arabia to implement sustainable practices, fostering a culture of corporate responsibility. It encourages a shift towards more environmentally friendly operations across the industrial landscape as part of the broader strategic framework of Vision 2030.