SADAFCO Partners with Yellow Door Energy for 2.9 MWp Solar Project Across Seven Facilities in Saudi Arabia

Saudia Dairy & Foodstuff Company (SADAFCO) has signed a solar lease, also known as a power purchase agreement (PPA), with Yellow Door Energy to provide clean electricity to seven of its facilities across Saudi Arabia. The 2,900 kilowatt-peak (kWp) project will supply renewable energy to SADAFCO’s ice cream and milk factories in Jeddah, its tomato paste factory in Dammam, a regional distribution center in Riyadh, and depots in Yanbu, Tabuk, and Makkah.

The solar initiative will involve the installation of over 4,700 solar panels across 13 connection points, tailored to SADAFCO’s existing energy infrastructure. Once operational, the system is expected to generate 4.9 million kilowatt-hours (kWh) in the first year, reducing carbon emissions by approximately 1,830 metric tons. Notably, SADAFCO’s ice cream factory will source 15% of its electricity from solar, reflecting the company’s commitment to sustainability.

Patrick Stillhart, CEO of SADAFCO, stated, “The solar lease with Yellow Door Energy brings clean electricity to seven of our facilities, marking the first step in our journey towards Net Zero by 2060 and a zero-emission fleet by 2045.”

Jeremy Crane, Group CEO of Yellow Door Energy, added, “This partnership highlights how sustainability initiatives can drive both environmental and business benefits. Saudi Arabia continues to lead the region in renewable energy adoption, and this project exemplifies that leadership.”

Construction of the solar plants is set to begin next month, with completion expected before the end of 2026. Under the solar lease agreement, Yellow Door Energy will finance, design, construct, commission, operate, and maintain the solar facilities, allowing SADAFCO to access clean energy without taking on operational risk.

Khaled Chebaro, Country Director for KSA at Yellow Door Energy, noted that the project is part of the company’s ongoing efforts to expand its portfolio in Saudi Arabia, supporting the Kingdom’s Net Zero by 2060 vision and broader sustainability objectives.