Riyadh Cement Company said it had signed an agreement with Samana Energy, a leading IPP specialising in renewable energy and sustainable solutions, to purchase solar-generated electricity for a 25-year period.
Under the agreement, Riyadh Cement expects to make average annual payments of about SAR6 million ($1.6 million), excluding value-added tax, over the contract period.
The electricity would 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 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, it stated.
The power generation system is expected to begin operations 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, it added.
In another development, Riyadh Cement 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 optimize 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, it stated.
Riyadh Cement said the project forms part of its broader operational and digital transformation strategy and is intended to strengthen its competitive position and support its long-term strategic objectives.
Also the company has inked a partnership deal with Cachapuz – Weighing & Logistics Systems for the supply, installation, and commissioning of advanced technology solutions for logistics and dispatching automation. This is aimed at further enhancing the company's dispatching operations through digital solutions and advanced safety and compliance technologies, it added.-TradeArabia News Service