SAUDI ARABIA —Riyadh Cement Company has signed a 25-year solar energy purchase agreement with SAMANA Energy, committing average annual payments of approximately SAR 6 million, excluding VAT, over the quarter-century duration. Under the terms finalized on September 14, 2026, the partnership involves the purchase of clean solar energy to power cement manufacturing operations in Saudi Arabia, with commercial operations scheduled to commence in the fourth quarter of 2027 under a zero-capex framework.
Riyadh Cement Company is a prominent Saudi joint-stock manufacturer specializing in clinker and various cement grades, supporting domestic construction and infrastructure demand. SAMANA Energy operates as a specialized clean energy solutions provider focused on commercial and industrial renewable power integration across regional markets.
This landmark agreement arrives as heavy industrial producers face mounting pressure to decarbonize high-emissions manufacturing processes. By shifting a portion of its energy mix to utility-scale solar without incurring capital or operating expenditures for infrastructure setup, Riyadh Cement establishes a benchmark for risk-free renewable adoption in heavy industry. The zero-capex framework removes traditional balance-sheet barriers that typically delay industrial green transitions.
Regionally, the transaction supports Saudi Arabia's Vision 2030 and National Renewable Energy Program objectives, encouraging heavy emitters to integrate clean power feeds. Regulatory pushes for industrial energy efficiency make third-party power purchase agreements attractive, though grid integration rules and land-use permits for solar installations remain critical path items monitored by national authorities.
For institutional investors and market analysts, the arrangement structurally lowers long-term unit production costs relative to legacy thermal generation and national grid tariffs, expanding net margins gradually from late 2027 onward. Peer cement manufacturers are expected to replicate similar zero-capex independent power producer models, intensifying competitive advantages for early movers while heightening long-term revenue visibility for industrial solar developers operating within the Kingdom.
