Toyota Motor Corporation, Chubu Electric Power Company and Toyota Tsusho Corporation signed an agreement to jointly establish a company that will source and manage renewable energy.

The new company, to be called Toyota Green Energy, is scheduled to be established in July of this year designated to develop and manage renewable energy sources in Japan to supply renewable energy to the Toyota group. It will be owned 50% by Toyota Motor, while Chubu Electric will take a 40% stake and Toyota Tsusho 10%.

Toyota in a statement said it was ready to embrace a society where people, automobiles and nature can coexist in harmony.

Under Toyota Environmental Challenge 2050, Toyota plans to reduce the environmental impact of automobiles to as close to zero as possible and also engage in activities that contribute to the global environment and society.

The clean energy to be supplied through this new company is expected to reduce CO2 emissions from plants and other facilities to zero in the future and contribute to the realisation of a low-carbon society.

Chubu Electric said it had been increasing its use of renewable energy for some years while Toyota Tsusho claims it has been engaged in the renewable energy business for more than 30 years, from development to operation of power stations with a focus on wind power and solar power generation. 

Toyota Green Energy aims to source sustainable and price competitive energy by maintaining sustainable practices while identifying opportunities to reduce costs.