April 3 (Renewables Now) - Japanese carmaker Toyota Motor Corp (TYO:7203) said on Thursday it will create a green energy unit to acquire and manage renewable energy plants and supply power to the entire group.
The company has entered into an agreement with local utility Chubu Electric Power Co Inc (TYO:9502) to set up Toyota Green Energy LLP. Under the terms of the deal, Toyota will hold a 50% stake in the new firm, while Chubu Electric will take a 40% interest.
The remaining 10% will be held by Toyota Tsusho Corp (TYO:8015), the trading arm of the Toyota Group that has been engaged in renewable energy activities for over 30 years through the development and operation of wind and solar parks.
The plan is to establish Toyota Green Energy in July 2020. This aligns with the “Toyota Environmental Challenge 2050” under which the group aims to cut the environmental impact from automobiles to as close to zero as possible.