Al-Jouf Agricultural Development Company (JADCO), one of the leading companies in the agricultural sector in the Kingdom, announced that its Board of Directors has approved proceeding with the implementation of a strategic project to deliver electricity to all its facilities in the Basita Center in the Al-Jouf region, at a huge investment cost of up to half a billion Saudi riyals.
Project background and the importance of the Basita area
The Basita region, often referred to as the "breadbasket of the Kingdom," is a vital center of agricultural production in Saudi Arabia. The area is renowned for its fertile soil and large-scale agricultural projects that produce strategic crops such as wheat, potatoes, olives, and fruits. Historically, many agricultural projects in remote areas like Basita have relied on diesel generators for electricity, resulting in high operating costs and significant carbon emissions. This project offers a radical solution to these challenges, aiming to connect the company's facilities to the national electricity grid.
Project details and economic dimensions
According to a company statement published on the Saudi Stock Exchange (Tadawul) website, the project falls under the "Liquid Fuel Replacement Program," a national initiative aimed at replacing liquid fuels (diesel and crude oil) with more efficient and cleaner energy sources such as natural gas and renewable energy. The company stated that the estimated cost of the project is 500 million riyals, and it is expected to be completed within 18 months of the start of construction.
Alignment with the Kingdom's Vision 2030
This decision aligns directly with the ambitious goals of Saudi Vision 2030, which prioritizes the transition to clean energy and economic diversification. By replacing diesel generators with electricity from the national grid, Al-Jouf Agricultural Development Company is contributing to reducing the carbon footprint of the agricultural sector and supporting the Kingdom's environmental sustainability goals. The project also reflects the private sector's commitment to playing a pivotal role in achieving the national vision.
Expected impact on the company and the sector
The project is expected to deliver multiple long-term benefits to the company, most notably a significant reduction in energy costs, thereby enhancing its profitability and competitiveness in both the local and international markets. Furthermore, the project will provide a stable and reliable energy infrastructure, enabling the company to expand its existing operations and launch new projects, thus supporting the Kingdom's food security goals. Domestically, the project will contribute to job creation during its implementation phase and support local companies operating in the contracting and energy sectors. The company indicated that it is currently exploring the best available financing options for the project and affirmed that it will disclose any significant developments in due course.
