Toyota inks green energy supply contract

MANILA, Philippines — Automotive giant Toyota Motor Philippines Corp. (TMP) has inked a retail supply contract with Team (Philippines) Energy Corp. to provide green-backed electricity for its manufacturing operations.

TMP said the deal would commence on Dec. 26.

“Such a move allows TMP to achieve 100 percent renewable energy (RE) ratio by supplying approximately 90 percent of the company’s total electricity requirement, complementing the rest of RE sourced onsite from an existing 1.46- megawatt rooftop solar power system,” TMP said.

Based on the agreement, every megawatt hour would be backed by an International Renewable Energy Certificate or I-REC(E), which verifies its sourcing from a domestic RE plant.

TMP president Atsuhiro Okamoto said the energy transition would neutralize the company’s Scope 2 emissions, particularly the indirect carbon dioxide emissions from purchased electricity for manufacturing operations.

 “Such is a significant milestone for TMP and its mission to address climate change, making its automotive manufacturing plant in Santa Rosa City, Laguna the front-runner and early achiever of 100 percent RE ratio target for Toyota in the ASEAN region,” he said.

Until year 2035, TMP is geared towards decarbonizing the rest of its energy sources for manufacturing, particularly for petrol-type generators, ovens and boilers for painting processes.

In 2020, Global Toyota set its target for all its manufacturing plants to be carbon-neutral by 2035 under the company’s overall net zero commitment or the Toyota Environmental Challenge 2050.

“In pursuing carbon neutrality, Toyota not only sets its eyes on expanding options of accessible electrified vehicles for diversified customers but also on reducing the environmental impact of the automotive industry’s value chain through appropriate life cycle actions,” the carmaker said.

Toyota actively engages its supply chain, logistics and dealer networks in decarbonization.

TMP said its local suppliers and dealers have followed its lead and implemented energy efficiency and RE initiatives.

It added several companies also have undertakings to achieve 100 percent RE ratio, either by investing in onsite solar power facility and or procuring RE through the Philippine government’s Green Energy Option Program.