Saudi's National Agricultural Development Company (NADEC), one of the largest foods and agricultural companies in the Middle East and North Africa region, said on Wednesday that the 10 megawatt (MW) first phase of its 30 MW solar power project in NADEC City, Haradh has been completed.

The final phase [of 20 MW] would be completed by the end of October 2021, the company said in a stock exchange statement.

NADEC said preliminary estimates show that the first phase is expected to reduce the company's fuel consumption in the range of 2,900,000 litres, which would reduce energy costs by 740,000 Saudi riyals ($197,303.60).

The cost savings would be reflected in the financial results for the fourth quarter, the statement said.

The company said the expected total decrease in fuel consumption once the entire project starts operations will be around 16,000,000 litres, equivalent to 4.1 million riyals ($1.09 million), which will reduce the company's energy costs by 4 percent.

In July 2019, NADEC had signed a 25-year solar Power Purchase Agreement with France’s Engie at a fixed price of 9.4 halalas per kWh to implement the solar power project.

(Writing by SA Kader; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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