Toyota to enter renewable energy business with new power venture

Automotive giant Toyota unveiled plans to enter the renewable power generation industry after a deal to set up Toyota Green Energy with a Japanese utility. Toyota – one of the world’s largest auto manufacturers and a pioneer of electric vehicles (EVs) with its Prius hybrid model – said the new company will run wind and solar plants in Japan to help the group meet its 2050 environmental ambitions. The auto-maker will own 50% of Toyota Green Energy, with power utility partner Chubu Electric holding 40%. The remainder will be owned by Toyota Tsusho, a part of the wider Toyota group that’s already active in wind and solar development in Japan and elsewhere and will “make use of its expertise in management of such businesses”. Toyota 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 realisation of a low-carbon society.” The global automotive sector is increasingly looking to position itself for a massive ramp-up of electrification, both in production operations and the use of green power for EVs that will dominate sales over the next few decades.