Rengo Co., Ltd. announces that it has signed a basic agreement with Sumitomo Forestry Co., Ltd. on business and capital partnership in the bioethanol business.
Rengo and Sumitomo Forestry reached this basic agreement after assessing that bringing together the supply chains and elemental technologies of the Rengo Group and Sumitomo Forestry Group can accelerate new business development in the biorefinery field. Going forward, the two companies will discuss details of this partnership, planning to establish a joint venture—with Rengo as the majority shareholder—around December 2025 and commence business.
Sumitomo Forestry Group is engaged in a broad range of global businesses centered on wood, including forestry management, the manufacture and distribution of wood building materials, the contracting of single-family homes and medium- to large-scale wooden buildings, real estate development, and wood biomass power generation. It promotes the cascade use of timber without waste through its businesses and also actively undertakes development of biorefinery technologies that make effective use of wood components.
Rengo's consolidated subsidiary Taiko Paper Mfg., Ltd. (TPM) is conducting a demonstration project that uses construction waste as pulp raw materials to produce second-generation bioethanol for sustainable aviation fuel (SAF). Given that the stable procurement of raw material wood chips will be important for advancing this business in the future, Rengo seeks to strengthen its procurement system for CORSIA-certified raw materials through collaborating with Sumitomo Forestry. At the same time, the joint venture will conduct the bioethanol business with the goal of achieving an annual production of 20,000 kl by 2027.

In addition, Rengo is looking at using wood biomass for the commercial production of a wide range of chemical products—such as raw materials for packaging film—in the future. Seeking even more effective use of cellulose, hemicellulose, and lignin, the company will promote initiatives that contribute to the creation of a carbon-free society.
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.