Riyadh Cement Signs 25-Year PPA For 30 MW Solar Project In Saudi Arabia

Riyadh Cement Company has signed a 25-year power purchase agreement with Samana Energy to procure clean electricity from a planned 30 MW solar photovoltaic project. The agreement will supply renewable power to Riyadh Cement’s manufacturing facility in Al-Muzahimiyah, near Riyadh, Saudi Arabia.

Under the long-term arrangement, Riyadh Cement is expected to make average annual payments of around 6 million Saudi riyals ($1.6 million), excluding value-added tax. The electricity tariff agreed under the contract is lower than the company’s existing self-generation costs as well as standard grid electricity rates offered by local utility suppliers.

The project is structured under a model that does not require Riyadh Cement to make upfront capital investments in the solar facility. Samana Energy, a joint venture between Al-Muhaidib Group and Group AMANA, will be responsible for financing, constructing, operating, and maintaining the solar project.

This arrangement is expected to help Riyadh Cement reduce its electricity expenditure while avoiding capital and maintenance costs associated with developing its own renewable energy infrastructure. The company expects financial savings to build progressively from the first year of commercial operations.

The 30 MW solar project is targeted to achieve commercial operation in the fourth quarter of 2027, subject to obtaining the required licenses, permits, and regulatory approvals from the relevant authorities.

The solar project will complement Riyadh Cement’s existing efforts to improve energy efficiency and reduce dependence on conventional electricity sources. The company’s Al-Muzahimiyah facility also has a waste heat recovery system that can generate up to 12.64 MW of electricity using heat produced during the cement manufacturing process. By combining solar power procurement with waste heat recovery, Riyadh Cement aims to increase the share of cleaner energy used in its manufacturing operations. The initiatives are part of the company’s broader efforts to reduce energy costs, improve operational efficiency, and support the transition toward lower-carbon power for its white and grey cement production facilities.