Rengo Co., Ltd. announces that its consolidated subsidiary Taiko Paper Mfg., Ltd. (TPM) has partnered with Biomaterial in Tokyo Co., Ltd. to commence a demonstration project to produce second-generation bioethanol, which is the raw material for sustainable aviation fuel (SAF).

This demonstration project will be implemented with funding and commission from a national research and development agency, New Energy and Industrial Technology Development Organization (NEDO).

With the aim of producing 20,000 kL of bioethanol annually by 2027, TPM will develop and demonstrate bioethanol production technology using kraft pulp produced from unused biomass resources, such as construction waste, as a raw material and enzymes internally produced from industrial microorganisms. The bioethanol will be converted to SAF by the fuel companies to which it is sold, and used as aviation fuel.

In parallel with the commencement of this demonstration project, TPM will review its business portfolio. In addition to introducing equipment for the demonstration project, TPM aims to improve quality and productivity and optimize material balance through upgrading the No. 5 paperboard machine and consolidating production on the No. 5 and No. 6 paperboard machines by shutting down the deteriorating No. 1 and No. 2 paperboard machines.

The Rengo Group regards addressing environmental issues as one of its core management issues and will continue to engage in a variety of initiatives, including developing products that reduce environmental impact and expanding the use of renewable energy.