Amman, 24th October, 2016:
At a ceremony held under the patronage of His Excellency Dr. Ibrahim Saif, Minister of Energy and Mineral Resources, Lafarge Cement Jordan, a member of the LafargeHolcim group (“Lafarge”) and Adenium Energy Capital (“Adenium”) signed an agreement that includes the establishment of a Solar Photovoltaic Power Plant with a capacity of 15 MW to supply electric power to the Rashadiya cement plant.
Under this 15-year energy savings agreement, Adenium will start the construction of the plant early next year and expects to achieve operational status in the third quarter of 2017.
The agreement, which was signed by Amr Reda CEO of Lafarge and Wassef Sawaf CEO of Adenium, heralds a great step forward in terms of reliance on alternative energy in the production of cement whilst minimizing its ecological foot print by lowering carbon emissions. This project is also in line with the national Jordanian strategy for renewable energy launched by the Ministry of Energy and Mineral Resources last year.
“This project is the first of its kind in the region; it is a build-own-operate project with a private offtaker that will be financed on a non-recourse basis. The PV plant will provide substantial savings to Lafarge’s electricity bills and is a great example of how renewable energy IPPs can add real bottom-line value to the private sector. We hope that this landmark project will pave the way for Adenium to provide similar solutions to private offtakers across our markets of operation”, commented Wassef Sawaf.
“This is an important milestone for the domestic industry sector in general and the cement industry in particular as this agreement emphasizes the positive role that industries can play in using alternative and renewable energy resources, we are proud to be pioneers in driving a positive change in cement industry and we invite other industries to follow suit in the conservation of natural resources and in contributing to a clean environment in Jordan”. Added Mr. Amr Reda.
Mr. Reda stressed that the shift to alternative energy is a strategic move for the country, in light of the high-energy costs and the need to make concrete and tangible financial and economic decisions. As such, these and similar projects will enhance the Jordanian economy on macroeconomic level. Furthermore, this project is in line with LafargeHolcim Group’s sustainability development plan, which includes innovation in using natural resources across its global operations.
Chadbourne & Parke LLP, a law firm advised Adenium on this transaction. “We are delighted to advise Adenium Energy Capital in relation to this ground breaking project” stated Mr. Richard Keenan, Partner. “Jordan is at the forefront of growth in the distributed generation sector in the Middle East. The business case for self-generation projects in Jordan is compelling and we expect this project to set an important precedent for the development of captive solar power plants in Jordan and the wider Middle East”.
Adenium is a leading investment and development company specialising in clean and alternative energy. Launched in early 2010, Adenium has developed and invested in utility-scale projects in the Middle East, Europe, and Japan with a portfolio totalling 600MW of capacity. Adenium’s mandate is to build a diversified global portfolio of clean energy assets with an initial focus on the solar and wind markets.