Endo-Phyte and Oji Holdings Sign MOU to Co-create New Business Utilizing Forest Ecosystems

◆Background of Basic Agreement Signing

Endo-Phyte Inc. (hereinafter, Endo-Phyte) and Oji Holdings Corporation (hereinafter, Oji Holdings) are pleased to announce that they have signed a Memorandum of Understanding (MOU) to co-create new businesses utilizing useful ecosystems, such as soil microorganisms inhabiting healthy forest soils.

Endo-Phyte develops solutions and products that enhance plant functionality by utilizing DSE (Dark Septate Endophytes), which are endophytic fungi selected from forest soils. DSE are symbiotic fungi that live within plant roots and have been reported to influence various plant physiological functions, including improved nutrient utilization efficiency of nitrogen and phosphorus, enhanced tolerance to environmental stress, promotion of flowering and fruiting, and increased production of functional compounds.

Furthermore, DSE not only act on plants independently but also contribute to the formation of plant-soil microbial networks through interaction with indigenous bacteria and other symbiotic microorganisms present in the rhizosphere. Recent research has shown that DSE colonization significantly impacts the structure and function of the rhizosphere and soil microbiome, playing a crucial role in supporting plant growth and environmental adaptability.

Symbiotic network by indigenous bacteria with DSE as the core

Endo-Phyte addresses challenges in the agriculture and forestry sectors by utilizing such useful forest-derived microorganisms to improve environmental stress tolerance and add high value. The company has also promoted co-creation and demonstration projects with approximately 40 major companies.

Oji Holdings owns extensive company-owned forests, "Oji's Forests" (approximately 636,000 ha), both domestically and internationally, and aims to maximize the multifaceted value of forests, with a particular focus on five elements: soil, water, biodiversity, nutrients, and CO2. Forest soil is positioned not only as the foundation for tree growth but also as a critical element that supports the entire forest ecosystem through its role in storing water and nutrients and the activities of microorganisms.

Oji's Forests (Hokkaido/Biei Forest)

The signing of this basic agreement is part of an initiative to connect the value of this forest soil ecosystem to concrete businesses and social implementation.

In recent years, the importance of agricultural and environmental solutions utilizing locally derived microorganisms has been increasing, particularly in Europe. In the future, the utilization of microorganisms adapted to the ecosystems of each region may be required. Against this backdrop, both companies have focused on the ecosystem resources inherent in forests and have begun collaborating to create new value.

◆Future Outlook

Through this initiative, the companies aim to develop and implement solutions for environmentally regenerative urban greening, agriculture, and forestry, adapted to the characteristics of each region, by utilizing the useful ecosystems of "Oji's Forests," such as healthy forest soils and soil microorganisms, which Oji Holdings possesses extensively both domestically and internationally. This will also involve the development of a new model for visualizing and utilizing the ecological value of forest soil, which has not been sufficiently quantified in the past, as economic value.

As an initial phase, demonstration and business feasibility studies utilizing "Oji's Forests" will commence, and specific use cases will be created. Furthermore, in the medium to long term, the companies aim to accelerate the creation of implementation opportunities and business development for this initiative through an industry-wide consortium for environmentally regenerative urban greening and urban agriculture, which both companies are launching in collaboration with multiple research institutions and businesses. Through industry-academia collaboration and inter-industry co-creation, we aim to contribute to the sustainable development of cities and regions.

◆About Endo-Phyte Inc.

Endo-Phyte's core is the world's largest collection and technology of endophytic fungi selected from forest soils. The company develops solutions and products that enhance plant functionality and promotes the co-creation of environmentally regenerative industries in collaboration with companies and local governments. The company is promoting co-creation and demonstration projects for climate change adaptation, value addition, and environmental regeneration in the agriculture, forestry, and environmental fields with approximately 40 co-creation partners.

Tokyo Headquarters Address: TAKANAWA GATEWAY Link Scholars' Hub, 2-21-1 Takanawa, Minato-ku, Tokyo

Ibaraki Headquarters Address: Food Innovation Building 301, 3-21-1 Chuo, Ami-machi, Inashiki-gun, Ibaraki University, Faculty of Agriculture

Representative: Toshiki Fukaoka

Date of Establishment: April 13, 2023

Homepage: https://endo-phyte.com/

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