Japan’s biggest refiner, Eneos Holdings Inc (5020.T), said on Monday it would buy Japan Renewable Energy (JRE) for about 200 billion yen ($1.8 billion) to expand its low-carbon business, joining a list of major global companies moving away from climate-changing fossil fuels.
Eneos, which aims to have net-zero emissions by 2040, will buy JRE from Goldman Sachs (GS.N) and Singaporean sovereign wealth fund GIC.
It said the deal, which marks the first big purchase of a renewables firm by a top Japanese oil company, would help it meet its target of having over 1,000 megawatts (MW) of renewables in Japan and abroad by March 2023.
Japan’s oil companies have ventured more into the renewables sector, much like their overseas peers such as Royal Dutch Shell (RDSa.L), especially after Tokyo vowed to cut down more emissions earlier this year.
[Chang-Ran Kim, Aaron Sheldrik and Yuka Obayashi]