The National News
Saudi Arabia's Public Investment Fund completed the acquisition of a 30 per cent stake in district cooling company Saudi Tabreed as part of its efforts to diversify the kingdom's economy and boost its investments in energy efficiency solutions.
The investment supports “PIF’s efforts to grow and develop the local utilities and low-carbon sectors”, the fund said on Sunday.
The financial terms of the deal were not disclosed.
Saudi Tabreed currently manages 779,000 tonnes of refrigeration through contracts with major companies in the kingdom. This includes Saudi Aramco’s Dhahran district cooling plant, the Jabal Omar district cooling plant in Makkah, the district cooling scheme at King Khalid International Airport in Riyadh, and a centralised cooling plant at the Amaad Business Park in Dhahran.
Saudi Tabreed also serves the Red Sea project.
“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,” said Yazeed 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.”
District cooling is recognised 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, PIF said.
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”, it added.