Toyota Tsusho Corporation, a Japanese multinational conglomerate, has announced that its joint venture (JV) with French energy firm TotalEnergies Renewables has successfully secured a contract from the Saudi Power Procurement Company to develop a state-of-the-art solar power plant with a capacity of 119 megawatts (MW). The JV also includes a unit of the Saudi-based Zahid Group, ensuring a collaborative effort among the partners.
With a project value of $100 million, Toyota Tsusho will oversee the establishment of the solar power plant through a joint venture company named Noor Alwadi Renewable Energy Company. In this partnership, both Toyota Tsusho and TotalEnergies Renewables will hold a 40% stake, while Altaaqa Renewable Energy will possess the remaining 20%.
The solar plant, which marks Toyota Tsusho’s first renewable project in Saudi Arabia, will be developed based on a complete build, own, operate (BOO) model and is planned to be located in Wadi Ad Dawasir.
Construction work on the plant has already commenced, and it is scheduled to commence commercial operations in March 2025.
According to Toyota Tsusho, this project was selected for the ‘Financing Programme for Joint Crediting Mechanism (JCM) Model Projects’, an initiative introduced by Japan’s Ministry of the Environment in 2022. The aim of this program is to provide financial support for projects that reduce greenhouse gas (GHG) emissions by utilizing cutting-edge decarbonization technologies in developing countries. In return, Japan can acquire JCM credits to help achieve its own GHG emission reduction targets.
The Toyota Tsusho group and TotalEnergies Renewables are committed to advancing renewable energy development and supporting the transition to a sustainable future. This joint venture represents a significant milestone in their efforts to promote clean energy and contribute to global decarbonization goals.
