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Oil wholesaler Eneos Holdings Inc. said Monday that it will acquire Tokyo-based renewable energy business Japan Renewable Energy Corp. for around ¥200 billion.

Under a deal closed the same day, Japan Renewable Energy will be a wholly owned subsidiary of Eneos around late January next year.

Eneos will acquire all shares in terms of voting rights from U.S. financial giant Goldman Sachs Group Inc. and Singapore’s sovereign wealth fund, GIC.

Japan Renewable Energy, established in 2012, incurred a consolidated net loss of ¥900 million in 2020 on revenue of ¥22.4 billion.

Through the acquisition, Eneos hopes to change its current business model, which relies heavily on fossil fuels. Decarbonization by Japanese energy-related businesses is expected to accelerate further after the acquisition.

With moves toward decarbonization picking up both in and outside Japan, Eneos has announced a target of reducing carbon dioxide emissions from its operations to effectively zero in 2040.

The company also plans to boost its global power generation capacity using renewable energy to more than 1 million kilowatts by the end of fiscal 2022 under its medium-term business plan.

At Japan Renewable Energy, the capacity is some 710,000 kilowatts on an equity basis, including the amounts expected from facilities under construction. The company also has know-how in solar and wind power generation.

Eneos “aims to become a leading renewable energy company in Japan” through the acquisition, the oil distributor said in a statement.

The acquisition will be “a springboard” for Eneos’ progress toward its long-term goals, Senior Vice President Keitaro Inoue told an online press conference, showing the company’s eagerness to start offshore wind power business.

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