PIF acquires 30% stake in Saudi district cooling firm

Saudi Tabreed/Twitter

The investment supports PIF’s efforts to grow and develop the local utilities and low-carbon sectors, the sovereign wealth fund said in a statement.

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Saudi Tabreed currently manages 779,000 tonnes of refrigeration via contracts with major companies in Saudi Arabia. This includes Saudi Aramco’s Dhahran district cooling plant, Jabal Omar district cooling plant in Mecca, a 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, which is a key part of Saudi’s Vision 2030.

Yazeed A Al-Humied, deputy governor and head of Mena Investments at PIF, 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 energy sources.”

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.

Mohammed Abunayyan, chairman, Saudi Tabreed, added: “With added credibility and stronger financial performance, being part of the PIF portfolio significantly expands our ability to support the country’s energy transition and sustainability targets.”

PIF has a strong track record of investing in the low-carbon sector, including electric vehicles and solar energy projects, as part of a commitment to developing 70 percent of Saudi Arabia’s renewable energy by 2030.

The wealth fund has major investments in renewable energy companies such as Acwa Power and Sudair and Al Shuaibah Solar Energy projects and in the development of electric vehicles through investments in Lucid Motors, Ceer and E1.