Jan 8, 2021

Toyota Tsusho Corporation ("Toyota Tsusho") announced on Jan 8 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.

(IRuniverse)