Toyota Motor to fund new renewable energy projects in Japan, including geothermal
Toyota Motor Corp. to invest $270m into renewable energy fund to push development of new solar, wind, biomass and geothermal power plants to power Toyota factories and dealerships.
Car maker Toyota Motor Corp. has announced to be a key investor in a new renewable energy fund set up by SPARX Group Co., Ltd., a Japan-based investment company.
Under the agreement, the plan is to establish a fund called “Mirai Renewable Energy Fund”, that aims to invest in renewable energy power facilities, with Toyota participating as investor.
The fund’s basic principle is “driving renewable energy growth and use throughout Japan,” aiming to further improve regional economic development and Japan’s energy self-reliance. Toyota is looking toward future electricity supplies for its production plants, electric vehicles, and dealerships, as part of achieving its “Environmental Challenge 2050” goals through its investment in the new fund. The fund also aims to support the realization of a low-carbon society that makes maximum use of clean energy.
An article by Asia Nikkei provides few further details. The target of the fund will be “a variety of facilities such as solar, wind, biomass and geothermal power plants. Rather than investing in existing facilities, it will target new ones to be involved in from the initial stages. Power generated may be sent to Toyota factories or dealerships.”
This should actually provide great opportunities for several renewable energy options, including geothermal – both larger and smaller scale.
- Basic Principle: “Driving renewable energy growth and use throughout Japan”
- Capital to be raised: approx. JPY 30 billion (around USD 270 million)
- Additional financing period: from November 1, 2018 until March 29, 2019
- Fund period: 25 years from the day the fund is formed