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. Saccharification enzymes, which are central to this process, are key factors determining 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 that includes 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 according to 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 aimed at the social implementation stage.

• 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 our participation in this project, we will maximize the knowledge and demonstration results gained to advance the establishment and popularization of the CellEzyme™ on-site enzyme production facility, with an eye toward applications in second-generation bioethanol, SAF raw materials, and the biorefinery sector, 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 uses proprietary enzyme-producing bacteria to produce enzymes 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