Saudia Dairy & Foodstuff Company (Sadafco) has signed a solar lease agreement with Yellow Door Energy, a leading sustainable energy partner for businesses in the Middle East and Africa, for the installation of a 2,900 kilowatt-peak (kWp) solar project.
As per the deal, the key facility will bring clean electricity to Sadafco’s ice cream and milk factories in Jeddah, its tomato paste factory in Dammam, a regional distribution center in Riyadh and three depots in Yanbu, Tabuk and Makkah.
Over 4,700 solar panels will be installed across 13 connection points to accommodate Sadafco’s existing energy infrastructure, said the statement from Sadafco.
Construction is starting next month, and the project is expected to be completed before the end of 2026.
Under the solar lease agreement, Yellow Door Energy is responsible for financing, designing, constructing, commissioning, operating, and maintaining the solar power plants. The solar lease model enables Sadafco to enjoy the benefits of clean energy without operational risk, allowing the company to focus on its core business while advancing its sustainability objectives.
Once completed, the solar system is expected to generate 4.9 million kWh in the first year of operation, equivalent to reducing carbon emissions by 1,830 metric tonnes.
Most notably, Sadafco’s ice cream factory will be powered by 15% clean electricity, ensuring sunshine in every delicious scoop, it stated.
On the strategic deal, CEO Patrick Stillhart said: "At Sadafco, we are actively working towards a low-carbon future with the aim for Net Zero by 2060 and achieve a zero-emission fleet by 2045. The solar lease with Yellow Door Energy brings clean electricity to seven of our facilities, the first of a bigger step towards decarbonizing our operations."
Yellow Door Energy Group CEO Jeremy Crane said: "We are honoured to partner with Sadafco, an iconic Saudi brand that has been nurturing our nation for almost five decades. Through the solar lease, significant carbon emission reductions and cost savings will be achieved, showcasing that what is good for the planet is also good for business."
"The Kingdom of Saudi Arabia continues to lead the region in its sustainability stewardship, and this important solar project demonstrates this leadership," he stated.
Brian Strong, Executive Transformation Director of Sadafco, said "We are inspired by Saudi Arabia’s Net Zero vision and honored to contribute to this national transformation. This solar lease is a key step in aligning our operations with the kingdom’s sustainability objectives. Together, we are building a cleaner, more resilient future for generations to come."
Khaled Chebaro, Country Director for KSA at Yellow Door Energy, said: "We are delighted to support SADAFCO and contribute to Saudi Vision 2030. Yellow Door Energy continues to rapidly expand its project portfolio in the Kingdom, helping businesses reduce energy costs and lower carbon emissions."
"To-date, we have signed five solar leases in Saudi Arabia and look forward to contributing to the Kingdom’s Net Zero by 2060 Target," he added.-TradeArabia News Service
