Toyota buys rest of renewable energy company for $1.5 billion

In a nationwide drive to meet ambitious green objectives, Toyota Motor Corp.’s trading arm will pay 185 billion yen ($1.5 billion) to acquire the remaining ownership in a Japanese wind and solar power company.

According to a filing on Thursday, Toyota Tsusho Corp. will buy Tokyo Electric Power Co.’s 40 percent share in Eurus Energy Holdings that it does not already own. The acquisition might be completed as early as June.

The move coincides with Japan’s ongoing green energy purchasing binge. By 2030, the government wants to reduce carbon emissions by 46% from 2013 levels, and be carbon neutral by 2050. Japan’s industries are committed to similar targets, and the government and investors are pressuring them to abandon fossil fuels.

Toyota Motor owns a 34% share in Toyota Tsusho, which functions as the company’s trading arm. According to Diamond Online in November, Japan’s leading automaker was considering buying a 40% share in Eurus Energy last year.

According to their website, Eurus Energy develops renewable energy projects all over the world, with over 100 projects in 15 countries.