Riyadh Cement Signs Solar Power Agreement with Samana Energy

Riyadh Cement Company has signed a 25-year agreement to buy solar-generated electricity from Samana Energy. Under this agreement, Samana Energy will finance, build, and operate a solar power generation system dedicated to Riyadh Cement’s operations. Riyadh Cement will pay only for the electricity it consumes, with average annual payments expected around SAR 6 million, excluding VAT, over the contract’s term. The system is expected to begin commercial operations in the fourth quarter of 2027, pending regulatory approvals.

This agreement allows Riyadh Cement to avoid capital expenditure and operating risk, with electricity priced below current rates. The deal is structured as a power purchase agreement, a model increasingly popular in Saudi Arabia for corporate solar adoption. This reflects a maturing solar-financing market in the region, now reaching mid-size industrial buyers directly.

Samana Energy, formed in October 2024 as a joint venture between Al Muhaidib Group and Group AMANA, focuses on commercial and industrial solar projects. The Riyadh Cement agreement is one of its most significant industrial contracts, marking its expansion into larger solar systems for heavy manufacturing.

Riyadh Cement is a leading producer in Saudi Arabia, strategically positioned to benefit from Vision 2030 projects. The company has also signed contracts for digitalization and logistics automation, indicating a modernization effort across its operations. This dual focus on decarbonization and digital transformation could serve as a model for other industrial firms in the region.