News Releases 2013

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Brazil
October 29, 2013

Honda Begins Construction of the First Wind Farm by an Automaker in Brazil

- Generating Renewable Energy to Cover Current Electricity Needed for its Annual Local Automobile Production -

SÃO PAULO, Brazil, October 29, 2013 - Honda Energy do Brasil Ltda. (Honda Energy), Honda's wind power generation business subsidiary in Brazil, today held a ceremony joined by government and community officials to mark the start of construction of its new wind farm in the city of Xangri-lá in Rio Grande do Sul, the southernmost state in Brazil (approximately 1,000 km south of Honda's current automobile production plant in Sumaré, São Paulo). Honda Energy plans to begin the operation of its new wind farm in September 2014.

Honda Energy's company logo
Honda Energy's company logo

Aiming to be more proactive in using renewable energy to minimize the environmental footprint of its business activities, Honda will be the first automaker in Brazil to start wind power generation business. The total investment for this wind power generation business is expected to be approximately 100 million Brazilian reais (approximately 4.3 billion yen*).

Honda Energy's wind farm will be equipped with nine wind power turbine units, and it is expected to generate approximately 95,000 MWh of electricity per year, equivalent to Honda's current annual electricity needed for automobile production in Brazil (approximately 140,000 units). By generating renewable energy to cover the electricity needed for the plant, Honda is expecting to reduce CO2 emissions by more than 2,200 t annually.

In conjunction with the ceremony, Honda Energy unveiled its company logo for the first time. The circular graphic represents the earth symbolizing sustainable nature, while the white line in the circle represents the movement of wind, which is necessary for wind power generation, as well as Honda's efforts for further environmental activities. The blue color of the logo represents blue skies (clean air) and clean water, which are essential for life.

*
Calculated based on the exchange rate of 1 Brazilian real = 43 yen

Comment by Carlos Eigi, president of Honda Energy do Brasil Ltda.

"Since Honda began local production in Brazil in 1976, Honda has been cooperating with the local community and striving to minimize the environmental footprint of our production activities. Wind power generation has proven to be very effective in reducing CO2 emissions, and I am very much pleased that we take one more step forward to utilize renewable energy with today's start of construction. Honda will continue to be proactive in pursuing environmental conservation activities in Brazil."

Honda has set a target to reduce CO2 emissions from its global products by 30 percent by the end of 2020 compared to year 2000 levels. Striving to attain this goal, Honda has been strengthening its initiatives on a global basis to reduce CO2 emissions from all business activities, including production and the supply chain.

About Honda Energy do Brasil Ltda.

Establishment: March 21, 2013
Capital Investment: 1,000 Brazilian reais (approximately 46,000 yen*)
Capitalization Ratio: 99.99% Honda Automoveis do Brasil Ltda.
0.01% Others
Representative: Carlos Eigi, President
Location: Xangri-lá city, Rio Grande do Sul State
Business Areas: Wind power generation business
Number of Wind Turbines: 9 units (1 unit: maximum output of 3 MW)
Generation Capacity: Maximum output of 27 MW (9 units total)

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