PIF acquires 30% stake in cooling system developer Saudi Tabreed
The Public Investment Fund (PIF), a sovereign wealth fund of Saudi Arabia, has acquired a 30% interest in the Saudi Tabreed District Cooling Company, a district cooling service provider, for a reported consideration of $250 million.
The acquisition anticipates to support PIF’s strategy to grow and develop the local utilities and low-carbon sectors as well as the company’s economic diversification goals outlined in Vision 2030.
In addition, the acquisition is expected to accelerate Saudi Arabia’s transition to sustainable and more efficient use of energy.
Saudi Tabreed develops sustainable cooling systems, which are energy-efficient, help conserve natural resources, and reduce greenhouse gases.
The company’s solutions are said to reduce power consumption, and operation and maintenance costs.
Saudi Tabreed currently manages 779,000 tonnes of refrigeration through contracts with major businesses in Saudi Arabia.
PIF acquires 30% stake in cooling system developer Saudi Tabreed. Photo courtesy of Saudi Tabreed, KSA.
Yazeed A Al-Humied – PIF MENA Investments Deputy Governor and Head said: “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.
“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.”
Saudi Tabreed serves the Dhahran district cooling facility of Saudi Aramco, the Jabal Omar district cooling plant in Makkah, the district cooling scheme at King Khalid International Airport in Riyadh, and the AMAAD Business Park centralized cooling facility in Dhahran.
In addition, Saudi Tabreed serves The Red Sea project, which forms part of Saudi Arabia’s Vision 2030.
PIF has invested in renewable energy companies such as ACWA Power and the Al Shuaibah and Sudair solar power projects.
The Saudi sovereign wealth fund has invested in Lucid Motors, E1, and Ceer for the development of electric vehicles.
PIF aims to develop 70% of Saudi Arabia’s renewable energy by the end of this decade.