Fujimi Kogyo, in Collaboration with TOWING and Nichino Ryoka, Begins Demonstration of Environmentally Sustainable Turfgrass Development Using High-Performance Biochar "Soratan"

Fujimi Kogyo Co., Ltd. (Headquarters: Shizuoka City, Shizuoka Prefecture; President and CEO: Masanobu Yamamoto; hereinafter "Fujimi Kogyo") has begun a joint demonstration project with TOWING Co., Ltd. (Headquarters: Nagoya City, Aichi Prefecture; President and CEO: Kohei Nishida; hereinafter "TOWING") and turfgrass manufacturer Nichino Ryoka Co., Ltd. (Headquarters: Chuo Ward, Tokyo; President and CEO: Nobuhiko Nagai; hereinafter "Nichino Ryoka") to develop and cultivate environmentally sustainable turfgrass using the high-performance biochar "Soratan."

This initiative responds to the growing demand for decarbonization across the entire supply chain of the landscaping and greening industry. By applying the J-Credit Scheme methodology "AG004 Application of Biochar to Agricultural Land" to greening materials, the project aims to generate carbon credits. Fujimi Kogyo will coordinate the overall demonstration and manage material distribution, advancing evaluation not only of carbon sequestration in farmland through the application of the high-performance biochar "Soratan," but also of soil improvement effects on turfgrass quality and productivity, as well as the economic viability of the entire initiative.

The three companies will collaborate toward the domestic first※ application of the J-Credit Scheme to turfgrass for greening, aiming to build a new business model that creates added value in both agriculture and environmental sustainability.

Background

Growing Demand for Decarbonization in the Greening Materials Industry

In recent years, there has been increasing demand across construction, landscaping, and urban greening sectors to reduce greenhouse gas (GHG) emissions (carbon footprint) across the entire lifecycle of materials used. In both public and private construction projects, the adoption of decarbonization-conscious materials is increasingly becoming a key criterion in bidding and evaluation processes.

In response to this trend, Fujimi Kogyo and Nichino Ryoka have established a policy to reduce GHG emissions across the entire supply chain of their landscaping and greening operations, and have been exploring environmental load reduction approaches using "turfgrass," a key material.

Current Status and Potential Expansion of the J-Credit Scheme "Application of Biochar to Agricultural Land"

The methodology "AG004 Application of Biochar to Agricultural Land" under the J-Credit Scheme is a recognized method for carbon sequestration in farmland. To date, domestic applications of this methodology have primarily focused on farmland producing food crops or ornamental plants for consumption, with no publicly confirmed cases of its use in farmland producing greening materials.

However, while the methodology has certain requirements regarding the type of farmland, it does not restrict the type of crop. Turfgrass for greening purposes has characteristics of a "crop" grown and managed on "farmland" during its cultivation period prior to shipment, making it potentially eligible under the methodology. Recognizing this opportunity, Fujimi Kogyo has taken the lead in demonstrating a new value creation scheme combining biochar application to farmland-grown turfgrass with J-Credit generation—believed to be the first※ such initiative in Japan.

※As of June 2026, according to Fujimi Kogyo research

Project Details and Roles of Each Company

Overview of the Demonstration Scheme

Fujimi Kogyo is leading the overall coordination of this demonstration, supplying and applying the biochar "Soratan" and other biochar to contracted turfgrass farmland operated by Nichino Ryoka, mixing it into the soil, and planting turfgrass.

Moving forward, verification will focus on the following three areas:

1. Evaluation of Growth and Quality Effects: Quantitative assessment of the impact of "Soratan" and biochar application on turfgrass growth, root development, and quality

2. Verification of J-Credit Generation Potential: Measurement of carbon sequestration from biochar application to farmland and establishment of a J-Credit generation scheme

3. Economic Evaluation: Assessment of overall business viability, integrating application costs with quality improvements and credit revenue

Division of Responsibilities Among the Three Companies

Future Outlook

The demonstration began in spring 2026 and will continue through autumn 2026, with ongoing monitoring of turfgrass growth and soil conditions. Based on the findings, the companies plan to explore issuing J-Credits under the J-Credit Scheme (AG004 Application of Biochar to Agricultural Land) through TOWING in fiscal year 2027.

Fujimi Kogyo aims to pursue the following developments:

- Provision of Decarbonization Value: Establish a system to sell J-Credits generated from turfgrass cultivation farmland to clients and stakeholders in landscaping and greening projects, offering a new value proposition in green material procurement

- Distribution of Differentiated Products: Develop and establish sales channels for a differentiated, low-carbon, high-quality product under the provisional name "Soratan Turfgrass"

- Expansion to Other Materials: Investigate the potential to extend the approach to other greening materials, such as ground cover plants and saplings

- Industry Standardization: Promote the adoption of this scheme across industry associations in landscaping and greening to drive and contribute to decarbonization across the entire sector

Company Profiles

<Fujimi Kogyo Co., Ltd.>

Representative: President and CEO Masanobu Yamamoto

Address: 1-21-22 Fujimidai, Suruga Ward, Shizuoka City, Shizuoka 422-8026

Business Activities: Manufacturing and sales of organic fertilizers and greening materials, rental storage business, and real estate utilization

Founded: January 14, 1946

URL: https://www.fujimi-ryokuka.co.jp/

<TOWING Co., Ltd.>

Representative: President and CEO Kohei Nishida

Address: 1 Furou-cho, Chikusa Ward, Nagoya City, Aichi 464-8601, Incubation Facility, Nagoya University

Business Activities: Manufacturing and sales of Soratan, support for its adoption, agency acquisition and sales of carbon credits based on Soratan usage, and sales of crops produced using Soratan

Founded: February 27, 2020

URL: https://towing.co.jp/

<Nichino Ryoka Co., Ltd.>

Representative: President and CEO Nobuhiko Nagai

Address: 14-4 Kobancho, Nihonbashi, Chuo Ward, Tokyo 103-0001, Okadani Building 6F

Business Activities: Contracting, design, construction, and management of landscaping, turf, and green space projects; sales of pesticides, fertilizers, and materials for non-agricultural land, etc.

Founded: June 1, 1974

URL: https://www.nichino-ryokka.co.jp/

Inquiries Regarding This Project

Contact: Yuka Yamamoto, Director of the President's Office

Phone: 054-282-2351 (main)

Email: y.yamamoto@fujimi-group.co.jp