Toyota Tsusho Corporation, a Japanese group, has revealed that it, along with French energy company TotalEnergies Renewables and a unit of Saudi-based Zahid Group, has secured a contract from Saudi Power Procurement Company for a 119MW solar power plant in Saudi Arabia.
The project, which is valued at $100 million, is being undertaken by a joint venture called Noor Alwadi Renewable Energy Company, with Toyota Tsusho and TotalEnergies Renewables each owning a 40% stake, while Altaaqa Renewable Energy holds the remaining 20%.
This solar plant, the first renewable energy endeavor in Saudi Arabia for Toyota Tsusho, will be developed under a build, own, operate model.
It will be situated in Wadi Ad Dawasir, a region known for its abundant solar resources throughout the year. Construction work has already commenced, and the plant is expected to start commercial operations in March 2025.
Toyota Tsusho has stated that this project was chosen as one of the Financing Programme for Joint Crediting Mechanism (JCM) Model Projects, which is an initiative by Japan’s Ministry of the Environment in fiscal year 2022.
By participating in this endeavor, Toyota Tsusho aims to contribute to the expansion of renewable energy and the transition to a carbon-neutral society.
The objective of the JCM model project is to provide financial support for implementing projects that utilise cutting-edge decarbonising technologies in developing countries, thereby reducing greenhouse gas (GHG) emissions.
In return, Japan and the partner countries earn JCM credits that contribute to achieving their respective GHG emission reduction targets.