Toyota Motor will hold 50% stake in the new venture, while Chubu Electric Power will own 40% and the remaining stake to be held by Toyota Tsusho
Japanese automotive manufacturer, Toyota Motor has established Toyota Green Energy to obtain and manage renewable energy sources in the country.
To set up Toyota Green Energy, Toyota Motor has signed an agreement with Chubu Electric Power and Toyota Tsusho.
The new company is also expected to supply electric power from renewable energy sources to the Toyota Group in the future.
As per the terms of the deal, Toyota Motor will hold 50% stake in the renewable venture, while Chubu Electric Power will own 40% stake and Toyota Tsusho will hold the remaining stake.
Toyota Motor intends to reduce the environmental impact from automobiles to as close to zero as possible, under its Toyota Environmental Challenge 2050.
Toyota Tsusho has engaged in the clean energy business
Toyota Motor said: “The clean energy to be supplied through this business is expected to reduce CO2 emissions from plants and other facilities to zero in the future and to contribute to the realization of a low-carbon society.”
It also said that Chubu Electric Power has been increasing the usage of renewable energy to expand the scope of ESG management and contribute to resolving issues relating to SDGs.
Toyota Tsusho has engaged in the clean energy business for over 30 years, from development to operation of power stations, with a focus on wind power and solar power generation.
It indents to use its expertise in management of business in the project in order to boost the transition to a low-carbon society.
Toyota Green Energy will commence operations after obtaining the required approval.
The automotive manufacturer added: “Going forward, Toyota Green Energy will achieve sustainable and competitive energy by maintaining sustainable practices through cost reductions and extending the lifespans of and replacing existing facilities.”