Selected for the Global South Future-Oriented Co-Creation Project Subsidy (Small-Scale Demonstration / FS Project) - Initiation of Feasibility Study on Manufacturing Bioethanol Sugar Using Agricultural Residue in Vietnam -

Sumitomo Forestry Co., Ltd. (President: Toshiro Mitsuyoshi; Headquarters: Chiyoda-ku, Tokyo) announces that its proposed project was selected in February for the Ministry of Economy, Trade and Industry's FY2024 supplementary 'Global South Future-Oriented Co-Creation Project Subsidy (Small-Scale Demonstration / FS Project)*', with the grant officially approved on April 3. The adopted project is the 'Socialist Republic of Vietnam / Feasibility Study on Manufacturing Bioethanol Sugar Using Agricultural Residue'. Addressing the issue of underutilized resources and unexploited waste in Vietnam, the project will examine a framework for utilizing agricultural residue as energy and resources, investigating the feasibility of a business model that balances decarbonization and economic growth. [Adopted Project] ■ Socialist Republic of Vietnam / Feasibility Study on Manufacturing Bioethanol Sugar Using Agricultural Residue ➣ Project Overview We will investigate a business for manufacturing bioethanol sugar using cashew apples, an agricultural residue generated in Vietnam, as a raw material, as well as the feasibility of utilizing the residue generated during sugar production as a raw material for biodiesel and SAF (Sustainable Aviation Fuel). By effectively utilizing resources that were previously discarded, we aim to simultaneously realize decarbonization as an alternative to fossil fuels. ➣ Background and Significance of the Project Initiative Vietnam is one of the world's leading producers and processors of cashew nuts; however, the majority of cashew apples generated as a byproduct after nut harvesting are discarded on farmland without being utilized. In Vietnam, a mandate to blend bioethanol into gasoline is planned from June 2026, making it a critical issue to secure sustainable and stable bioethanol feedstocks derived from non-edible sources. Through this project, we will conduct the following investigations until February 2027, aiming to realize a decarbonized society through the overseas expansion of Japan's advanced biomass utilization and sugar manufacturing technologies. - Investigation of the collection and quality characteristics of cashew apples, an unutilized agricultural residue. - Verification of the manufacturing process and quality of sugar for bioethanol. - Evaluation of the applicability of byproducts as raw materials for biodiesel, etc. - Business feasibility evaluation of the entire supply chain, including raw material procurement to product sales. Our group company, Vina Eco Board Co., Ltd. (President: Masanori Hayakawa), has been manufacturing particle boards using old cashew trees (trees aged 20-30 years that have decreased production and are subject to renewal logging) as raw materials. By newly considering the effective use of cashew apples this time, we will expand the cascade utilization of completely utilizing cashew trees, aiming to achieve both effective resource utilization and high added value. The Sumitomo Forestry Group globally expands businesses centered on 'wood', from forest management, timber and building materials manufacturing and distribution, contracting of detached houses and medium-to-large scale wooden buildings, real estate development, to woody biomass power generation. In our long-term vision 'Mission TREEING 2030', by rotating Sumitomo Forestry's value chain 'Wood Cycle', we aim to increase CO2 absorption by forests, fix carbon over the long term through the spread of wooden architecture, and contribute to the decarbonization of not only our company but society as a whole. We will continue to accelerate decarbonization by promoting the use of wood and wood-derived materials in construction and substituting other materials with wood. * Global South Future-Oriented Co-Creation Project Subsidy (Small-Scale Demonstration / FS Project) A subsidy system implemented by the Ministry of Economy, Trade and Industry to support surveys and demonstration projects conducted by Japanese companies in Global South countries (emerging and developing countries). It supports the overseas expansion of Japanese companies through co-creation with the Global South. (https://gs-hojo-web-fspoc.jp/index.html)