Marubeni, Ajlan & Bros and United District Energy forms JV for District Cooling Business in Saudi Arabia

Marubeni, Ajlan & Bros and United District Energy forms JV for District Cooling Business in Saudi Arabia

Marubeni Corporation, together with Ajlan & Bros for Trading and United District Energy International LLC (UDEI), announced in a statement that the firms intend to enter into the district cooling business in the Kingdom of Saudi Arabia and have entered into a joint venture agreement on January 19, 2023.

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. This system contributes significantly to decarbonization by optimizing the operation of the cooling facilities and by taking advantage of economies of scale.

In the Kingdom of Saudi Arabia, the demand for district cooling is expected to expand due to factors such as continuous population growth and urbanization, vigorous real estate development, and increased motivation for energy conservation. The three companies aim to meet local demand by combining Marubeni’s know-how in infrastructure business development and operation in the Kingdom of Saudi Arabia; the know-how of UDEI, which has extensive experience in district cooling; and the local network of the Ajlan