Japan's Marubeni Corporation said it has joined hands with two key regional players in the utility sector - Ajlan & Bros for Trading of Saudi Arabia and Qatar's United District Energy International (UDEI) - to enter into the district cooling business in KSA.
The Marubeni move comes at a time when the demand for district cooling in KSA is expected to expand due to factors such as continuous population growth and urbanization, vigorous real estate development, and increased motivation for energy conservation.
As per the JV deal, the three companies will work jointly to meet the local demand for district cooling services.
Marubeni will be utilising its know-how in infrastructure business development and operation in KSA; while the UDEI, which has extensive experience in district cooling, will deploy its expertise for the project and the local network will be taken care of by Ajlan & Bros Holding Group, which is involved in a wide range of businesses in the kingdom.
Marubeni had formulated the long-term vision for climate change in March 2021 and had positioned a green strategy as one of its basic policies for enhancing corporate value in its mid-term management strategy GC2024, said a company spokesman.
"District cooling is a plant system that supplies chilled water produced by a central plant to multiple buildings through pipelines. By consolidating the cooling facilities and increasing their capacity, it is possible to improve the efficiency of energy use and achieve better usage of floor area compared to having such facilities in individual buildings," he explained.
"This system contributes significantly to decarbonization by optimizing the operation of the cooling facilities and by taking advantage of economies of scalem," he noted.
"Through this project, Marubeni will expand its community-based utility service business, accelerate the process of decarbonization, and contribute to the sustainable economic development of Saudi Arabia," he added.-TradeArabia News Service