In line with the objectives of Saudi Arabia’s Vision 2030 and its focus on sustainability and clean energy, Riyadh Cement Company announces the award and signing of a 25-year agreement with Samana Energy for the purchase of solar energy.
Date of Announcement of the Award
2026-09-14 Corresponding to 1448-04-03
Contract Subject Matter
Purchase of energy from SAMANA Energy
The Entity with Which the Contract was Signed
SAMANA Energy
Date of Signing the Contract
2026-09-14 Corresponding to 1448-04-03
Contract Value
The average annual payments under the agreement are expected to be approximately SAR 6 million per year, excluding VAT, throughout the contract term.
Contract Details
The agreement is based on purchasing energy from SANAMA Energy at a cost lower than the Company’s current electricity generation cost and lower than the cost of Saudi Energy Company. Riyadh Cement Company will not be required to provide financing for the project, as it will not incur any capital or operating expenditures, subject to obtaining the necessary licenses and approvals from the relevant authorities.
Contract Duration
25 years
Financial Impact and the Relevant Period
The power generation system is expected to commence operations in the fourth quarter of 2027. Based on the Company’s initial estimates, the impact of cost savings is expected to materialize 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.
Related Parties
N/A
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