Riyadh Cement Company has entered into a 25-year agreement with Samana Energy to purchase solar-generated electricity, as reported by ME Construction News. The deal is expected to yield average annual payments of approximately US $1.6 million, excluding value-added tax, throughout the contract duration.
The agreement stipulates that the electricity will be procured at a cost lower than Riyadh Cement’s current generation expenses and below the rates charged by the Saudi Energy Company. This strategic move is anticipated to enhance the company’s operational efficiency while contributing to its sustainability goals.
Riyadh Cement clarified that it will not need to finance the project, nor will it incur any capital or operational expenditures, pending the necessary licenses and approvals from relevant authorities. The power generation system is projected to commence operations in the fourth quarter of 2027, with cost savings expected to begin in the first year of operation. However, the actual financial impact will depend on the energy prices applicable at that time.
In addition to the solar power agreement, Riyadh Cement has also partnered with China’s Tianjin Cement Industry Design & Research Institute to implement a digital transformation initiative. This 24-month project, known as the ‘Light House Project’, aims to enhance operational efficiency and productivity through the integration of digital technologies and Industry 4.0 applications.
The digital transformation project will encompass various aspects, including automation, process optimization, artificial intelligence, predictive maintenance, and energy efficiency measures. This initiative is part of Riyadh Cement’s broader strategy to improve its competitive position and support long-term objectives.
Furthermore, the company has collaborated with Cachapuz – Weighing & Logistics Systems to supply and install advanced technology solutions for logistics and dispatch automation. This partnership is expected to further enhance the company’s dispatch operations through the implementation of digital solutions and advanced safety and compliance technologies.
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