Al-Babtain's leap into renewable energy: creating global impact and business expansion by partnering with PIF’s ACWA Power

Al-Babtain's leap into renewable energy: creating global impact and business expansion by partnering with PIF’s ACWA Power

Introduction:

Al-Babtain, a renowned local steel manufacturer, embarked on a transformative journey in partnership with ACWA Power, a Portfolio Company of the Public Investment Fund (PIF). This collaboration aimed to build solar trackers for Saudi Arabia's first utility-scale solar project, Sakaka. The project, led by ACWA Power, marked the first Independent Power Producer initiative under the National Renewable Energy Program (NREP) of Saudi Arabia. This partnership not only reshaped the renewable energy landscape in Saudi Arabia but also made a significant global impact.

Private Sector Partnership:

Al-Babtain joined forces with ACWA Power and Nextracker, an international original equipment manufacturer, targeting to localize the production of critical Photovoltaic tracker components, which constitute a significant part of project costs. This initiative aimed at localizing cutting edge technology, creating high-skilled jobs, and contributing to the Kingdom’s economic diversification. Al-Babtain’s expertise in steel manufacturing along with dedicated efforts of ACWA Power and Nextracker towards nurturing local suppliers and facilitating knowledge transfer, helped achieve the required business targets. This strategic partnership also laid a solid foundation for Al-Babtain's business expansion and realization of new revenue streams.

Impact and Value Creation:

The partnership with PIF’s Portfolio Company empowered Al-Babtain to establish expertise in solar photovoltaic projects and further expand its horizons into the Wind Turbine business and establish new manufacturing facilities for wind towers. Due to their new capabilities, Al-Babtain has been awarded tenders worldwide across projects located in US, Australia, Oman, UAE, and others. This venture into the renewable energy business not only spurred growth and profitability for Al-Babtain but also supported Saudi Arabia’s Vision 2030 and localization objectives.