Saudi group to expand UK operations via $1.24bln investment into renewable energy

These projects are part of the UK government’s recent commitment to “net zero” greenhouse gas emissions by 2050

  
Image used for illustrative purpose. Wind turbines spin at a windpark on October 17, 2012 near Neubrandenburg, Germany. Germany's electricity network operators recently announced that they will raise the charge to consumers for subsidizing renewable energy investments by 50%.

Image used for illustrative purpose. Wind turbines spin at a windpark on October 17, 2012 near Neubrandenburg, Germany. Germany's electricity network operators recently announced that they will raise the charge to consumers for subsidizing renewable energy investments by 50%.

Getty Images/Sean Gallup

The Alfanar Group, one of Saudi Arabia’s largest industrial conglomerates, will set up a renewable energy office in the UK to oversee Alfanar’s investments, including a £1 billion ($1.24 billion) investment into six waste-to-energy projects that are expected to create hundreds of new jobs.

These projects are part of the UK government’s recent commitment to “net zero” greenhouse gas emissions by 2050. They will also divert more than a million tons of waste away from landfill, supporting the UK government’s Industrial Strategy Grand Challenge for clean growth.

“[Alfanar’s] investment will create new jobs and help support the government’s ambition to hit ‘net zero’ greenhouse gas emissions by 2050,” said Graham Stuart, the UK’s Minister for Investment, during his visit to Riyadh on July 16. 

Alfanar is primarily engaged in manufacturing a wide range of electrical construction products; engineering, procurement, construction (EPC) solutions for conventional and renewable power plants; allied engineering services; and design engineering.

Alfanar will set up its office in London through its subsidiary, Alfanar Energy UK Ltd., which is also expected to create as many as 30 jobs.

Jamal Wadi, CEO of Alfanar Global Development, had this comment on the investment: “We see clear benefits in partnering with UK-based suppliers, contractors, and engineering firms. Alfanar Group is a global player in the electricity sector, with a global renewable development portfolio in photovoltaic, concentrated solar power, wind and waste-to-energy projects of 1.5 GW.”

As a worldwide energy EPC developer, Alfanar has an aggregated value of $2 bn in ongoing turnkey projects under construction or in final stages in Europe, the Middle East, Africa and South Asia. According to a statement from the company, it also caters to various government and business sectors to support Saudi Arabia’s Vision 2030 nationalization and manufacturing plans for the power and water sectors.

(Reporting by Seban Scaria seban.scaria@refinitiv.com, Editing by Daniel Luiz)

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