VivoPower's Tembo Signs Definitive Distribution Agreement with the Kingdom of Saudi Arabia’s Green Watt Worth up to an Estimated US$85 Million over 5 Years
Rhea-AI Summary
VivoPower International (Nasdaq: VVPR) has announced that its subsidiary, Tembo e-LV, has signed a Definitive Distribution Agreement with Saudi Arabian company Green Watt, valued at up to US$85 million. The agreement involves the sale and distribution of 1,600 Tembo electric utility vehicle (EUV) units across Saudi Arabia over the next five years.
Green Watt, established in 2016, specializes in renewable energy and environmental sustainability solutions. Their customer base includes major companies like Aramco, Halliburton, Saudi Electric Company, Honeywell, and Baker Hughes. The partnership aims to advance sustainable energy solutions in Saudi Arabia, targeting the significant market for electrifying ruggedized utility vehicles, particularly the Land Cruiser 70 series used in law enforcement, government agencies, and industrial sectors.
Positive
- Significant contract value of up to US$85 million over 5 years
- Entry into Saudi Arabian market with established partner serving major clients like Aramco
- Access to large addressable market in law enforcement, government, and industrial sectors
- Strategic alignment with Saudi Arabia's carbon reduction initiatives
Negative
- Revenue realization dependent on actual sales performance over 5-year period
- Success relies on adoption rate of EV conversion in traditional vehicle-heavy sectors
Insights
This distribution agreement represents a potentially transformative development for VivoPower, with the
The agreement to distribute 1,600 Tembo electric utility vehicles in Saudi Arabia through Green Watt opens a significant new market for VivoPower's subsidiary. What's particularly notable is Green Watt's established relationships with heavyweight clients including Aramco (the world's largest oil company), Halliburton, Saudi Electric Company, and other major industrial players.
This partnership creates a strategic entry point into the Saudi Arabian market, where the government has committed substantial resources to sustainability initiatives and decarbonization efforts. The widespread use of ruggedized utility vehicles in the region across law enforcement, government agencies, and industrial sectors presents a substantial addressable market.
While investors should note the agreement represents potential rather than guaranteed revenue (approximately
Agreement with Green Watt represents Tembo’s first deal in fast growing Saudi Arabian market
Green Watt has signed agreement with Tembo to sell and distribute 1,600 Tembo EUV units in the Kingdom of Saudi Arabia (KSA) up to 2030
Green Watt’s customer base includes Aramco, the world’s largest oil company, Halliburton, Honeywell, Baker Hughes and the Saudi Electric Company
LONDON, April 11, 2025 (GLOBE NEWSWIRE) -- VivoPower International PLC (Nasdaq: VVPR) (“VivoPower” or the “Company”) announced today that its subsidiary, Tembo e-LV (“Tembo”), has signed a Definitive Distribution Agreement (“Agreement”) worth up to an estimated US
Green Watt is a KSA-based company established in 2016 and specializes in the areas of renewable energy, energy conservation, and environmental sustainability. With strong emphasis on environmental protection, quality and transparency, Green Watt assists its clients to achieve their financial and environmental objectives. By implementing energy conservation measures (ECMs), Green Watt ensures reduced power consumption, reduced cost and carbon footprint. In addition to that, Green Watt provides solutions ranging from stand-alone PV systems to complex hybrid applications. Customers of Green Watt include Aramco, Halliburton, the Saudi Electric Company, Honeywell, Baker Hughes, JAL International, and Al Mansoori, among others.
The strategic distribution agreement between VivoPower and Green Watt reflects both companies' shared commitment to advancing sustainable energy solutions in the Kingdom of Saudi Arabia.
Saudi Arabia presents an opportunity for corporate partnerships in sustainable energy solutions, driven by strong government support and ambitious carbon reduction targets aligned with global sustainability goals. The widespread use of ruggedized utility vehicles, such as the Land Cruiser 70 series, by law enforcement and government agencies, as well as the mining, oil and gas and other industrial sectors means there is a significant addressable market for electrification.
With numerous agencies and corporates operating under vehicle lease structures, converting used Land Cruisers to electric and re-leasing them offers a practical, cost-effective pathway to electrification. This model not only lowers operational costs but also supports the KSA’s transition to a greener economy.
Nazir Muhammad, CEO of Green Watt, said: “At Green Watt, we believe in electrifying the future of mobility, not just in words but in action. Our partnership with Tembo marks a decisive step towards cleaner, smarter transportation solutions across emerging markets. Together, we’re not only reducing emissions but also empowering communities with sustainable technologies that work for people and the planet.”
Matthew Nestor, Director, Head of Global Partnerships at VivoPower, said: “This partnership with Green Watt is a strategic milestone in our mission to deliver turnkey sustainable energy solutions to the Kingdom of Saudi Arabia. Nazir and the Green Watt team share our commitment to decarbonizing transport in a commercially viable and socially impactful way. By joining forces, we’re accelerating the deployment of Tembo’s electrification technology in a country committed to decarbonisation, where it can make a transformative difference.”
About VivoPower
Established in 2014 and listed on Nasdaq since 2016, VivoPower is an award-winning global sustainable energy solutions B Corporation company focussed on electric solutions for off-road and on-road customised and ruggedised fleet applications as well as ancillary financing, charging, battery and microgrids solutions. VivoPower’s core purpose is to provide its customers with turnkey decarbonisation solutions that enable them to move toward net-zero carbon status. VivoPower has operations and personnel covering Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates.
About Tembo
Tembo electric utility vehicles (EUVs) are a
About Green Watt
Established in 2016, Green Watt is led by a team with over 25 years of experience in the energy sector. The company specializes in the areas of renewable energy, energy conservation, and environmental sustainability.
With a strong emphasis on environmental protection, quality, and transparency, Green Watt assists clients in achieving their financial and environmental objectives. By implementing energy conservation measures (ECMs) the company ensures reduced power consumption, reduced cost, and carbon footprint. In addition to that, Green Watt provides solutions ranging from stand-alone PV systems to complex hybrid applications.
Forward-Looking Statements
This communication includes certain statements that may constitute “forward-looking statements” for purposes of the U.S. federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterisations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the achievement of performance hurdles, or the benefits of the events or transactions described in this communication and the expected returns therefrom. These statements are based on VivoPower’s management’s current expectations or beliefs and are subject to risk, uncertainty, and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of VivoPower’s business. These risks, uncertainties and contingencies include changes in business conditions, fluctuations in customer demand, changes in accounting interpretations, management of rapid growth, intensity of competition from other providers of products and services, changes in general economic conditions, geopolitical events and regulatory changes, and other factors set forth in VivoPower’s filings with the United States Securities and Exchange Commission. The information set forth herein should be read in light of such risks. VivoPower is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of new information, future events, changes in assumptions or otherwise.
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FAQ
What is the value and duration of VivoPower's (VVPR) distribution agreement with Green Watt?
Who are the major customers of Green Watt in Saudi Arabia that could benefit from VVPR's Tembo EVs?
What is the target market for VVPR's Tembo electric vehicles in Saudi Arabia?
How does the Tembo EUV distribution align with Saudi Arabia's environmental goals?
