Participation in NEDO's 'Bio-Manufacturing Revolution Promotion Project'

Nippon Steel Engineering Co., Ltd. (Representative Director and President: Yukito Ishiwa; Headquarters: Shinagawa-ku, Tokyo; hereinafter "the Company") is pleased to announce its participation as a joint implementer in the "Bio-Manufacturing Revolution Promotion Project," promoted by the Ministry of Economy, Trade and Industry and the New Energy and Industrial Technology Development Organization (NEDO). The research and development theme proposed by Kao Corporation, "Construction of a Saccharification Enzyme Supply Platform to Create Industries Utilizing Unused Biomass Resources," has been selected for this project.

This project is a national initiative aimed at transitioning the manufacturing of chemicals, materials, and fuels from conventional chemical processes to bio-processes utilizing microorganisms and enzymes, with the goal of social implementation. In bio-processes, the saccharification step, which breaks down biomass into sugars, plays a critical role. The saccharification enzymes at the core of this process are vital factors that determine business competitiveness in terms of performance, supply stability, and cost. However, current challenges include high enzyme costs and the need to strengthen domestic supply systems.

To address these issues, Kao Corporation will work on building an enzyme supply platform, including the improvement and provision of saccharification enzymes*1. The Company will collaborate with Kao to evaluate saccharification performance using the enzymes provided, select optimal enzymes, and jointly examine the expansion of enzyme saccharification adaptability based on raw material characteristics and pretreatment conditions. Furthermore, by utilizing CellEzyme™*2, an on-site enzyme production facility that the Company has been developing and commercializing, we will proceed with equipment design and standardization aimed at large-scale enzyme production. We will also conduct integrated demonstrations using portable CellEzyme™ units for second-generation bioethanol demonstration operators, among others, to conduct technical studies geared toward social implementation.

• Expansion of enzyme saccharification adaptability based on biomass raw material characteristics and pretreatment conditions
• Advancement and standardization of equipment for commercial use
• Integrated demonstrations using portable on-site enzyme production equipment CellEzyme™ for second-generation bioethanol demonstration operators

Through the knowledge and demonstration results gained from participating in this project, the Company will maximize its efforts to establish and promote CellEzyme™, with a view to its application in fields such as second-generation bioethanol, SAF (Sustainable Aviation Fuel) feedstocks, and biorefineries, thereby contributing to a decarbonized society.

*1 Reference: Kao Corporation press release dated February 26, 2026: https://www.kao.com/jp/newsroom/news/release/2026/20260216-001/
*2 CellEzyme™ is a trademark for on-site enzyme production equipment that produces enzymes using proprietary enzyme-producing bacteria within the premises of a biorefinery plant. It has been developed based on the Company's unique technology and design philosophy, and has already established technical reliability at a level capable of application to semi-commercial scale bioethanol production plants. https://www.eng.nipponsteel.com/business/environment_and_energy_solution/biomass_to_ethanol/biomass_to_ethanol_conversion_equipment/#cellezyme