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Logo of National Agricultural Development Co. (NADEC)
National Agricultural Development Co. (NADEC) sealed a 20-year agreement with Saudi Investment Recycling Co.'s (SIRC) 100% owned subsidiary, Municipal Solid Waste Recycling Company (Yadoum), to recycle biowaste and contribute to environmental protection, in line with the Kingdom's Vision 2030.
SIRC is wholly owned by the Public Investment Fund (PIF).
In a statement to Tadawul, NADEC said that approximately 150,000 tons of biowaste are generated annually out of the company’s operations in relation to raising herds of cows for the purpose of dairy production.
As per the agreement, Yadoum will build a plant for recycling and processing animal waste to produce fertilizers on a designated land owned by NADEC, located near the dairy farms in Haradh.
The parties agreed to sign a rental agreement, whereby Yadoum will rent a specific site from NADEC to establish a plant for recycling and processing animal waste to produce fertilizers, against certain fees to be determined at the time of signing the lease agreement.
For the first five years of the agreement, NADEC will supply and sell 150,000 tons of biowaste to SIRC annually at a set price per ton. The biowaste ton price shall increase by an agreed upon percentage every five-year period.
Moreover, NADEC and SIRC agreed on determining quantities that will be supplied to Yadoum for the second five-year period at least six months before the end of the first five years.
They also agreed to review future quantity projections every two and a half years throughout the agreement's validity period.
Yadoum will recycle and convert the biowaste into highly efficient organic fertilizers through a factory for animal waste recycling and treatment.
In addition, Yadoum commits to providing high-quality fertilizer to NADEC according to a specific price per cubic meter with a specific discount agreed upon between the two parties.
Yadoum will also provide R&D expertise and capabilities to assist NADEC in finding permanent and sustainable solutions with regard to animal waste.
The project’s financial impact and any material developments in this regard, including the start of the project's construction works and the start of experimental and commercial operations, will be announced in due course, according to the statement.
In January, NADEC signed a memorandum of understanding with SIRC to recycle biowaste and contribute to environmental protection.
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