PIF buys 30pc stake in Saudi district cooling company

Saudi Arabia's sovereign wealth fund PIF (The Public Investment Fund) today (February 12) said it has completed the acquisition of a 30% stake in Saudi Tabreed District Cooling Company.

 

A leading provider of sustainable district cooling schemes for some of the kingdom's largest projects, Saudi Tabreed currently manages 779,000 tonnes of refrigeration (TR) via contracts with major companies.

 

This includes Aramco’s Dhahran plant, Jabal Omar plant in the city of Makkah, the district cooling scheme at King Khalid International Airport in Riyadh, and a centralized cooling plant at Amaad Business Park in Dhahran. The company also serves The Red Sea project, which is a key part of Saudi Vision 2030.

 

Saudi PIF said the investment supports its efforts to grow and develop the local utilities and low-carbon sectors. 

 

The weath fund has a strong track record of investing in the low carbon sector including electric vehicles and solar energy projects, as part of a commitment to develop 70% of Saudi renewable energy by 2030. 

 

PIF has major investments in renewable energy companies such as Acwa Power and Sudair and Al Shuaibah Solar Energy projects, and in the development of electric vehicles through investments in Lucid Motors, Ceer and E1.

 

"Our investment in Saudi Tabreed will support the achievement of PIF’s economic diversification goals, especially in light of the anticipated growth in Saudi Arabia’s district cooling market," remarked Yazeed A. Al Humied, Deputy Governor and Head of Mena Investments at PIF.

 

"The investment is also fully aligned with PIF’s strategy to enable promising sectors in the country, and supports Saudi Arabia’s transition to sustainable and more efficient sources of energy," he stated.

 

Saudi Tabreed Chairman Mohammed Abunayyan said: "PIF’s investment further enhances our position as a market leader in Saudi Arabia. With added credibility and stronger financial performance, being part of the PIF portfolio significantly expands our ability to support the country’s energy transition and sustainability targets."

 

"We are committed to working together as we move forward in our mission to enhance Saudi Arabia’s urban development through innovative, advanced, and highly efficient district cooling solutions," he stated.

 

According to him, Saudi Tabreed offers highly efficient solutions that drive reductions in power consumption and the costs of operation and maintenance, as well as encouraging alternatives to traditional air conditioning systems. 

 

District cooling is recognized as one of the most energy-efficient cooling solutions, due to its ability to conserve natural resources, making a major contribution to the reduction of greenhouse gases, he added.

 

Source: https://www.tradearabia.com/news/CONS_406309.html

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