Toyota Tsusho Corporation (“Toyota Tsusho”) announced today that it has acquired 35% of the issued shares for the Northern Electricity Development & Investment Joint Stock Company No. 2 (“NEDI2”), a company that operates the Ngoi Phat Hydropower Plant (installed capacity: 84 MW), from Vietnam Construction and Import-Export Joint Stock Corporation (“VINACONEX”), a major construction and property development company in Vietnam. This will be Toyota Tsusho’s first equity investment into an overseas hydropower generation business.
Because of the abundant hydropower resources in Vietnam, hydropower covers approximately 40% of the country’s power demand. NEDI2, in which Toyota Tsusho now holds equity shares, has continued stable power operations supported by a 25-year power purchase agreement concluded with Vietnam Electricity Corporation (“EVN”). Through the equity participation, Toyota Tsusho is expected to boost power generation efficiency and to improve the operation, applying Japan’s hydropower generation technologies and knowhow.
Hydropower is, among other renewable energy sources, a generation source which deliver stable electricity to the market for a long term at a low cost. Toyota Tsusho expects to build a partnership with VINACONEX through the operation of NEDI2 and further, studies the feasibility of hydropower generation and other renewable energy development in Vietnam.
Toyota Tsusho positions renewable energy strategy as one of its growth strategies to resolve the environmental issues on a global basis. In addition to wind power which Toyota Tsusho group have strengths in, efforts are being devoted to diversification of energy sources including hydropower, geothermal power and biomass, and to geographical expansion of its business areas. Toyota Tsusho will continue to strengthen its renewable energy business and contribute to the transition to a carbon free society.
Hydropower project outline
|Ngoi Phat Hydropower Plant
|Ngoi Phat River Basin, Lào Cai Province, Socialist Republic of Vietnam
|Northern Electricity Development & Investment Joint Stock Company No. 2 (NEDI2)
Toyota Tsusho: 35%
Individual shareholders: 27%
|Vietnam Electricity Corporation (EVN)
|Power generation capacity
The Toyota Tsusho Group’s renewable energy business activities
The Toyota Tsusho Group has been involved in renewable energy business for more than 30 years, since starting wind power generation business in the United States in 1987. Wind power generation projects have been started up in Europe, Asia and Africa. The Group has grown into the largest wind power generation operator in Japan since construction of a wind farm in Hokkaido in 1999. In its drive to diversify energy sources, a solar power generation business started in South Korea in 2008 led to the construction of one of the largest scale U.S. solar power plants in 2011 in California. In Japan, mega-solar projects have been organized in Hokkaido, Tohoku and Kinki regions since 2013. In addition, the operation of woody biomass power generation using timber from forest thinning in Japan has started up in 2015. In 2018, the Toyota Tsusho Group has invested in The Tokyo Electric Generation Company, Incorporated, a group company of Tokyo Electric Power Company Holdings, Incorporated, operating small and medium-sized hydropower generation projects in Japan. At present, the business has grown in scale to exceed 3,400 MW in total power generation capacity.