@Toyota: Participation in 100MW Solar Photovoltaic IPP Projects in Tunisia ～Our first renewable energy projects in the country ～

Toyota Tsusho Corporation (“Toyota Tsusho”), through its group company AEOLUS SAS (“AEOLUS”), which is engaged in renewable energy business in Africa, will participate in two independent power producer (IPP) projects to construct, own, operate 100MW solar power plants and sell electricity in the Republic of Tunisia (“Tunisia”).

This will be Toyota Tsusho’s first renewable energy project in the country, and the first project for Aeolus since its establishment.

The project is to develop, own, and operate solar power plants in Sidi Bouzid and Tozeur of Tunisia, with capacity of 50 MW respectively. Aeolus, established in March this year to consolidate the Toyota Tsusho Group’s renewable energy business in Africa, will take a 49% stake in the project, while Scatec ASA, a Norwegian company involved in the construction and operation of solar power plants, will take 51%. Construction is scheduled to begin in August 2024, and after the completion of the construction, the electricity will be sold to the national utility under a 20-year power purchase agreement with option for a 10year extension.

The total project cost is approximately 79 million euros. The projects are financed through non-recourse project finance debt, including from the European Bank of Reconstruction and Development (“EBRD”) and Société de Promotion et de Participation pour la Coopération Economique (“Proparco”). Aeolus is also supported through the political risk insurance provided by the Multilateral Investment Guarantee Agency (“MIGA”)^※1 of the World Bank Group.

In addition, this project has been selected by the Ministry of the Environment, Japan for Financing Programme for Joint Crediting Mechanism (JCM) Model Projects^※2 in FY2023.

Toyota Tsusho Group promotes carbon neutrality in order to deliver a better global environment for future generations. In Africa, under the key message “for the future children of Africa”, we will continue to promote green businesses that contribute to solving social issues and realizing economic growth in Africa.

※1　a member of the World Bank Group, providing guarantees to promote cross-border investment in developing countries by providing guarantees (political risk insurance, credit enhancement, and trade finance guarantees).
※2 　Ministry of the Environment, Japan has been implementing the “JCM Model Projects,” which provides financial supports covering up to half of the initial investment costs. 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. This project is being implemented with the cooperation of the Tunisian and Japanese governments.