Total secures funds for $100m solar project in Saudi Arabia

TotalEnergies has reached financial closure to manage a $100 million solar photovoltaic power plant close to Riyadh.

The consortium comprises France’s TotalEnergies, Japan’s Toyota Tsusho and Saudi Arabia’s Altaaqa Renewable Energy (Zahid Group).

The deal was finalised with Arab Petroleum Investments Corporation and Riyadh Bank, TotalEnergies said in a statement.

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The French oil major won the project in the third round of the kingdom’s national renewable energy programme.

A power purchase agreement with the state-owned Saudi Power Procurement Company will involve the group being responsible for financing, owning and operating the photovoltaic power plant, which will be built by China’s Sepco by early 2025 in Wadi Al Dawasir, 500km southwest of Riyadh.

Earlier this year TotalEnergies, which already operates solar plants in Qatar and the UAE, was awarded a large renewable project in Iraq.

“Saudi Arabia is a close partner of TotalEnergies and this project is another example of our successful multi-energy strategy,” Ahmed Tarzi, country chair of TotalEnergies Saudi Arabia, said.

In pursuit of the 2050 net zero goal, TotalEnergies is building a portfolio of activities in electricity and renewables.   

The company will expand this business segment to reach 35gw of gross production capacity from renewable sources and storage by 2025 and 100gw by 2030.

In a separate statement, Toyota Tsusho said this was its first project in Saudi Arabia.

The plant’s construction started in June 2023, and will be followed by the launch of the commercial operation in March 2025.

Toyota Tsusho and TotalEnergies will each own 40 percent of the project, while Altaaqa will hold the remaining 20 percent.