China-based Hanergy Thin Film Power Group has signed an investment cooperation agreement with Ajlan & Bros to launch a $1 billion solar thin-film industrial park in Saudi Arabia, the first in the Middle East region.
The agreement was signed at the launch event of Saudi Arabia National Industrial Development and Logistics Program (NIDLP), which is one of the 12 programs initiated as part of Saudi Vision 2030, focusing on transforming Saudi Arabia into an industrial powerhouse.
Under the agreement, the two companies will collaborate to develop renewable energy manufacturing facilities in Saudi Arabia and jointly seek relevant investment opportunities.
“We are excited to collaborate with Hanergy. Thin-film power is a promising market, especially in Saudi Arabia. The renewable energy facilities are bound to reform the landscape of the country’s energy industry and help us achieve our goals in the 2030 vision”, said Mohamed Al Ajlan, deputy chairman of Ajlan & Bros.
Wei Qiang, president of Hanergy Saudi Arabia Country Company, added: “We realise the potential of renewable energy in Saudi Arabia and have set out an organised and specific road map to diversify our business in the country while supporting the advancement of renewable energy and fulfil theKingdom’s commitments to reducing carbon dioxide emissions.
“The collaboration with Ajlan & Bros could be a turning point for both Hanergy and solar industry of Saudi Arabia,” he said.
The agreement comes as Saudi Arabia has been endeavouring to reduce its dependence on oil and go through a major transition towards more diversified and sustainable energy resources.
In 2011, oil was the source of over 50 percent electricity in the country and there was only 0.003 gigawatts of solar power capacity installed nationwide. The government then announced that Saudi Arabia would develop 41 gigawatts of solar capacity by 2032.
This edited article first appeared in Arabian Business.