SADAFCO Collaborates with Yellow Door Energy to Deploy Solar Power Across Seven Facilities
Saudia Dairy & Foodstuff Company (SADAFCO) has entered into a solar lease agreement—commonly referred to as a power purchase agreement (PPA)—with Yellow Door Energy, a leading provider of sustainable energy solutions for businesses across the Middle East and Africa. The partnership aims to supply clean electricity to seven of SADAFCO’s operational sites across Saudi Arabia.
The project involves the installation of a 2,900 kilowatt-peak (kWp) rooftop solar system that will serve multiple SADAFCO facilities, including its ice cream and dairy production plants in Jeddah, a tomato paste factory in Dammam, a regional distribution center in Riyadh, and three logistics depots located in Yanbu, Tabuk, and Makkah.
More than 4,700 solar panels will be deployed across 13 grid connection points, designed to integrate seamlessly with SADAFCO’s existing energy infrastructure. In its first year of operation, the system is expected to generate approximately 4.9 million kilowatt-hours (kWh) of electricity, reducing carbon emissions by an estimated 1,830 metric tons. Notably, the solar installation will supply around 15 percent of the electricity required by SADAFCO’s ice cream factory, marking a tangible step toward cleaner production.
Patrick Stillhart, CEO of SADAFCO, said the agreement reflects the company’s long-term sustainability ambitions. He emphasized that SADAFCO is working toward achieving Net Zero emissions by 2060 and transitioning to a zero-emission vehicle fleet by 2045. The solar lease, he added, represents an important milestone in reducing the company’s carbon footprint and decarbonizing its operations.
Jeremy Crane, Group CEO of Yellow Door Energy, described the partnership as a collaboration with one of Saudi Arabia’s most established and trusted brands. He noted that the project will deliver both environmental benefits and operational cost savings, reinforcing the idea that sustainability initiatives can align with strong business performance. Crane also highlighted Saudi Arabia’s leadership role in regional sustainability efforts, stating that the project reflects the Kingdom’s growing commitment to clean energy.
Brian Strong, Executive Transformation Director at SADAFCO, said the initiative aligns closely with Saudi Arabia’s national Net Zero ambitions. He emphasized that the solar lease supports SADAFCO’s broader transformation strategy, contributing to a more resilient and environmentally responsible operating model while supporting the Kingdom’s long-term sustainability goals.
From Yellow Door Energy’s perspective, Khaled Chebaro, Country Director for Saudi Arabia, said the company is pleased to support SADAFCO and contribute to the objectives of Saudi Vision 2030. He noted that Yellow Door Energy has now signed five solar lease agreements in the Kingdom and continues to expand its project portfolio, helping businesses reduce energy costs while lowering emissions. The company views the SADAFCO project as another step toward supporting Saudi Arabia’s Net Zero by 2060 target.
Construction of the solar systems is scheduled to begin next month, with completion expected before the end of 2026. Under the terms of the solar lease, Yellow Door Energy will fully finance, design, build, commission, operate, and maintain the solar power plants. This structure allows SADAFCO to benefit from clean energy without assuming operational or technical risks, enabling the company to focus on its core business while advancing its sustainability commitments.
Source:
Sahm Capital. (2026). Sadafco partners with Yellow Door Energy to bring solar power to seven Sadafco facilities. Sahm Capital News.
https://www.sadafco.com/sadafco-partners-with-yellow-door-energy-to-bring-solar-power-to-seven-sadafco-facilities/
