Japanese petroleum and metal conglomerate Eneos Holdings has announced it has acquired all Japan Renewable Energy‘s (JRE) issued shares for a $1.7bn consideration.

The company’s subsidiary, Eneos Corporation, will acquire the shares from Goldman Sachs Asset Management and an affiliate of Singapore-based sovereign wealth fund GIC Private Limited.

JRE will become a wholly owned subsidiary of Eneos Holdings following the deal’s completion.

The deal is intended to increase Eneos’ total operational and developing renewable power generation capacity to more than 1,220MW.

In a statement, Eneos Group said that it aims to ‘become one of the most prominent and internationally competitive energy and materials company groups in Asia’.

The company also intends to ‘create value by transforming our current business structure and contribute to the development of a decarbonised, recycling-oriented society’.

Eneos plans to combine JRE’s development capabilities with its renewable energy business to become a leading renewable energy company in the country.

The company will supply carbon-free electricity by combining renewable energy power supplies with an energy management system.

By 2040, Eneos Group aims to achieve carbon neutrality in its own carbon dioxide emissions to work towards a decarbonised society.

JRE was founded in August 2012 by Goldman Sachs with a vision to ‘take leadership in creating a sustainable society by developing renewable energy’.

The company has been involved in renewable power generation and is engaged in developing projects, as well as operating and maintaining renewable energy facilities.

JRE’s renewable portfolio includes solar, onshore wind and biomass facilities. The company is also engaged in offshore wind business development.

Earlier this year, the Japanese Government announced it would aim to reduce the country’s use of fossil fuels such as liquefied natural gas and coal for energy generation.

According to a policy draft, renewables should account for 36% to 38% of Japan’s power supply by 2030.