Japanese group Toyota Tsusho Corporation has announced that its joint venture with French energy major 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 the kingdom.
The $100 million project is being set up by Toyota Tsusho through a joint venture company, Noor Alwadi Renewable Energy Company, in which both the Japanese group and TotalEnergies Renewables each have a 40% stake, while Altaaqa Renewable Energy has the rest of 20%.
The solar plant, which is the first renewable project in Saudi Arabia for Toyota Tsusho group,will be implemented on a build, own, operate model.
It will be located in Wadi Ad Dawasir, a region blessed with abundant solar resources throughout the year.
The work on the plant has already begun and it is due for commercial operations in March 2025.
According to Toyota Tsusho, this project was selected for Financing Programme for Joint Crediting Mechanism (JCM) Model Projects, an initiative of Japan’s Ministry of the Environment, in FY2022.
Through this project, Toyota Tsusho will continue to contribute to the expansion of renewable energy and the transition to carbon neutral society, it added.
The purpose of this model projects is to financially support the implementation of projects which reduce GHG emissions by utilizing leading decarbonizing technologies in developing countries, and in return, to acquire JCM credits for achievement of Japan’s GHG emission reduction and the partner countries’ emission reduction target.