Al Jouf Cement Company has partnered with France’s Engie to construct and operate a solar power plant at its factory in Turaif, Saudi Arabia. The plant will have a generation capacity of 22 megawatts (MW) and is expected to meet about 25% of the factory’s electricity requirements.
Al Jouf Cement will purchase electricity from the plant for 25 years after it becomes operational. The company stated that the cost of electricity from the solar plant will be lower than the current costs of generating power using heavy fuel oil and cheaper than connecting to the national grid under industrial electricity rates. The project will be entirely funded and operated by Engie, meaning Al Jouf Cement will not bear any capital or operational expenses.
This aligns with efforts to decarbonize energy-intensive sectors such as cement manufacturing in Saudi Arabia. Saudi Arabia has been increasing its focus on renewable energy as part of its broader goals to diversify its energy sources and reduce reliance on fossil fuels. The country aims to achieve 50% of its power generation from renewable sources by 2030 under its Vision 2030 initiative.
Recently, Saudi Arabia has completed several renewable energy projects. One notable achievement is the Sakaka solar power plant, the country’s first large-scale renewable energy project. With a capacity of 300 MW, Sakaka supplies electricity to thousands of homes while significantly reducing carbon emissions. Additionally, Saudi Arabia inaugurated the Dumat Al Jandal wind farm in 2021. It is the largest wind power project in the region, with a capacity of 400 MW.
These projects highlight Saudi Arabia’s efforts to transition to cleaner energy and reduce its carbon footprint. The new partnership between Al Jouf Cement and Engie further supports this trend, showing a growing adoption of renewable energy in industrial operations.