#Japan #Nagoya #Biochar #Japan Green Investment #TOWING

Investment in TOWING by Japan Green Investment Corp.

On October 28, 2022, Japan Green Investment Corp. for Carbon Neutrality (JICN), led by President Yoshihiko Tayoshi, announced its decision to invest in TOWING Co., Ltd., based in Nagoya, Aichi Prefecture, and led by CEO Kohei Nishida. This investment aims to support TOWING’s fundraising efforts as it embarks on critical initiatives related to carbon neutrality.

TOWING's flagship product is a high-performance biochar known as "Sora-tan". This biochar is created from materials such as rice husks and is enhanced with specially designed soil microorganisms. By applying Sora-tan to farmland, TOWING aims to improve soil fertility and increase crop yields while also storing carbon in the soil, thus contributing to significant agricultural and environmental benefits.

Overview of TOWING Co., Ltd.

• - Name: TOWING Co., Ltd.
• - Headquarters: Nagoya, Aichi Prefecture
• - Representative: CEO Kohei Nishida
• - Established: February 27, 2020
• - Main Business: Manufacturing and sales of high-performance biochar "Sora-tan" and supporting the introduction of these practices in agriculture.

Over the past few years, TOWING has successfully introduced Sora-tan to various types of crops nationwide. Future plans include constructing large-scale plants domestically and expanding operations internationally.

Policy Significance of the Investment

Greenhouse Gas Reduction and Absorption

The agricultural sector is one of the key global sources of greenhouse gas (GHG) emissions. To achieve carbon neutrality by 2050, initiatives such as Japan's "Climate Change Adaptation Policy" and the Ministry of Agriculture, Forestry and Fisheries' "Green Food System Strategy" promote the use of biochar as a means to enhance soil's capacity to store carbon. Introducing biochar like Sora-tan, which is resistant to microbial decomposition, can significantly increase the soil’s carbon storage capacity.

Utilizing materials like rice husks and poultry waste, TOWING transforms underutilized biomass into biochar, effectively creating a long-lasting carbon sink within the soil. The unique process used in producing Sora-tan allows it to maintain suitable pH levels for crops, facilitating its application without limitations, resulting in greater carbon fixation compared to regular biochar.

The adoption of Sora-tan also qualifies for the J-Credit system (Methodology AG-004 for the application of biochar in agriculture), enabling TOWING to generate J-Credits, which contributes significantly to Japan's GHG inventory.

Economic and Environmental Synergy

The proliferation of TOWING's Sora-tan promises to enhance both sustainable agriculture and local economies:

• - Waste to Resource: By utilizing regionally available biomass for making Sora-tan, TOWING promotes upcycling waste into valuable resources, helping to reduce local waste generation.
• - Reduction of Chemical Fertilizers: The application of Sora-tan results in the rapid formation of high-quality soil, leading to decreased reliance on chemical fertilizers and fostering sustainable agricultural practices. This improvement is expected to boost crop yields, enhancing economic profitability for farmers.
• - Ecosystem Consideration: The microbial blends used in creating Sora-tan are derived from microorganisms indigenous to the regions where the biochar is applied, ensuring a balanced approach that takes ecosystem impacts into account.

JICN will continue to collaborate with various stakeholders to finance diverse projects contributing to decarbonization. In addition, JICN aims to disseminate expertise, information, and human resources while connecting innovative ideas and technologies for building a prosperous and sustainable future.

References

[1] Overview of Project and Investment Schemes
[2] JICN Company Overview

• - Name: Japan Green Investment Corp. for Carbon Neutrality (JICN)
• - Representative: President Yoshihiko Tayoshi
• - Established: October 28, 2022 (active until 2050)
• - Capital: ¥36 billion
• - Location: 7th Floor, Tokyu Toranomon Building, 1-21-19 Toranomon, Minato-ku, Tokyo
• - Website: JICN Official Site