Tokuyama : Notice Concerning Construction of a Pilot Plant for the Development of Black Pellets to Expand the Use of Non-Fossil Fuels

December 20, 2023

Tokuyama Corporation

Notice Concerning Construction of a Pilot Plant

for the Development of Black Pellets to Expand the Use of Non-Fossil Fuels

Tokuyama Corporation (hereinafter referred to as "Tokuyama" or "the Company") today announced that it would introduce technology from Yilkins Drying Solutions B.V., a venture company based in the Netherlands, and construct a pilot plant for the development of black pellets (hereinafter referred to as "BP") at Tokuyama Factory. Brief details are presented as follows.

Tokuyama has set "helping to fight global warming" as one of the Company's priority issues in its Medium-Term Management Plan 2025 and is working to reduce GHG emissions by 30% by fiscal 2030 compared to fiscal 2019. In particular, the Company has positioned the in-house development of BPs as one initiative in its efforts to switch to non-fossil fuels at Tokuyama Factory's captive power plants, which have high GHG emissions.

In light of the global trend toward decarbonization, internationally certified biomass fuels are expected to experience tight supply and demand going forward. Through the use of this pilot plant, Tokuyama plans to produce high-quality BPs from inedible raw materials to ensure stable procurement.

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Black pellets (photo):

Pellets are made by heating biomass under low-oxygen conditions to approximate the properties of coal. Generally, the energy density is said to be about 20% higher than that of ordinary wood biomass (white pellets).

Contact concerning this release

Corporate Communications & Investor Relations Dept.

Tokuyama Corporation

Tokyo Head Office TEL: +81-3-5207-2552

Corporate Communications & Investor Relations Dept., TEL: +81-3-5207-2552,

FRONT PLACE AKIHABARA, 7-5, Sotokanda 1-chomeChiyoda-ku, Tokyo 101-8618,

Japan