France-based energy solutions provider ENGIE will develop a 22 MW solar photovoltaic project for Saudi Arabia’s Al Jouf Cement Company near Turaif in the country’s Northern Borders Province.

The two companies signed a power purchase agreement (PPA) for the project covering an area of 420,000 square meters.

The solar project is expected to cut carbon emissions by approximately 1.48 million tons over its 25-year operational lifespan.

By generating on-site renewable power, the project will help Al Jouf Cement reduce dependence on conventional energy sources while ensuring stable energy costs under the fixed-rate PPA agreement.

The cost of procuring power from the solar project will be lower than Al Jouf’s current procurement costs from its heavy fuel oil power plant and lower than the industrial electricity costs if connected to the national grid. The solar project is expected to contribute approximately 25% of the company’s electricity needs upon completion. Al Jouf will not incur any financing for the project, as it will not bear any capital or operational expenses.

Al Jouf is expected to save SAR3.6 million (~$0.96 million) in electricity costs annually.

The project is tailored to meet Al Jouf’s operational needs and will integrate state-of-the-art technology, including rooftop and ground-mounted installations, to optimize energy generation.

ENGIE will manage the project end-to-end, covering design, development, construction, and ongoing maintenance.

Saudi Arabia is actively pushing for the diversification of energy resources and collaborating with the private sector to decarbonize industries as part of a broader strategy to achieve its net-zero ambitions.

The move aligns with the country’s Vision 2030 goals to transform its economy and reduce its reliance on fossil fuels.

Pierre Cheyron, ENGIE’s Managing Director for Energy Solutions in the AMEA region, said, “Our collaboration with Al Jouf Cement demonstrates how renewable energy projects can transform energy-intensive industries.”

In September, the Saudi Power Procurement Company invited bids for solar photovoltaic and wind energy projects with a combined capacity of 4,500 MW.

Earlier this year, ENGIE signed a loan agreement with the Asian Development Bank for a 400 MW solar photovoltaic power project in Gujarat, India.