Euglena Co., Ltd. in Bangladesh Conducting a Research Project to Build a Raw Material Supply Chain for SAF Ministry of Economy, Trade and Industry's FY2023 Supplementary Global South Future-oriented Co-creation Project Subsidy Was Adopted by

(Euglena (Google Translation)) Euglena Co., Ltd. (Headquarters: Minato-ku, Tokyo; President and CEO: Mitsuru Izumo) is pleased to announce that its "People's Republic of Bangladesh / Research Project to Establish a Raw Materials Supply Chain for SAF ^*1 in Bangladesh" has been selected for the Ministry of Economy, Trade and Industry's "FY2023 Supplementary Budget Global South Future-Oriented Co-Creation Project Subsidy."

Japan has set a goal of replacing 10% of domestic airline fuel consumption with SAF by 2030, and several SAF production projects are underway. However, used cooking oil (UCO), the main raw material for SAF, is expected to experience supply shortages and price hikes due to growing global demand, making it important to ensure a stable supply of UCO and alternative raw materials, as well as to build a supply chain to secure raw materials. In recent years, UCO recovery businesses have been expanding in Asian countries, but in Bangladesh, UCO recovery businesses and the cultivation of oilseed crops ^*2 as raw materials for SAF are almost unexplored, and the country is expected to have a future as a supplier of new raw materials for SAF.

We have been working in Bangladesh for over 10 years on the Euglena GENKI Program, which distributes cookies containing Euglena to children free of charge, ^and on social businesses that support local farmers. As we are also promoting the commercialization of our biofuel business, we focused on the possibility of building a raw material supply chain for SAF by utilizing the relationships we have built with local organizations and farmers. If we can establish a UCO recovery business and oil crop cultivation as new industries in Bangladesh, we can create new social businesses that will generate income by creating jobs locally and exporting raw materials for SAF to Japan, while also contributing to reducing CO2 emissions, thereby contributing to the elimination of poverty, unemployment, and the realization of zero CO2 emissions.

This time, further economic cooperation between Japan and Bangladesh and Benefits To achieve this, we will proceed with a feasibility study*4 as part of our "People's Republic of Bangladesh/Research project to establish a raw materials supply chain for SAF in Bangladesh," which was selected for the Ministry of Economy, Trade and Industry's "^FY2023 Supplementary Budget Subsidy for Global South Future-Oriented Co-Creation Projects."

Details of the "People's Republic of Bangladesh / Research Project for Establishing a Raw Materials Supply Chain for SAF in Bangladesh" are as follows:

●About the "People's Republic of Bangladesh / Research project for establishing a raw material supply chain for SAF in Bangladesh"
Selected company: Euglena Co., Ltd. (survey commissioned by Grameen Euglena)
The analysed country is : People's Republic of Bangladesh
Period: Early February 2025 (planned) - December 2025
Project overview: In Bangladesh, we will conduct a feasibility study on a UCO recovery business, a raw material for SAF. We will also utilize our knowledge of mung bean cultivation in the area to conduct a feasibility study on oil crop cultivation on land unsuitable for cultivation or during fallow periods. We aim to strengthen Japan's supply chain through the procurement of raw materials for SAF, as well as to solve local social issues.
Main activities:
・UCO recovery business
・Oil crop cultivation business, etc.

About the Ministry of Economy, Trade and Industry's "FY2023 Supplementary Global South Future-Oriented Co-Creation Project Subsidy"
The Ministry of Economy, Trade and Industry's "FY2023 Supplementary Global South Future-oriented Co-creation Project Subsidy" is a subsidy for Global South countries. ^*5 By solving the issues facing these regions, we aim to utilize the growth potential of the market and revitalize domestic industries by creating innovation in Japan. We also aim to strengthen economic ties with the Global South and to promote the development of the countries where this project is implemented.Benefits To achieve this, the program subsidizes part of the costs required for business feasibility studies and small-scale demonstration projects conducted by Japanese companies to expand infrastructure, etc. overseas.

● Our Group's activities in Bangladesh
Our company was founded in response to the nutritional problems in Bangladesh. With the purpose of "Making people and the planet healthy," we operate the "Euglena GENKI Program," which distributes nutritious Euglena cookies to local children in Bangladesh free of charge, and have been working for over 10 years on social business to support local farmers through euglena GG Ltd. (hereinafter "Grameen Euglena"), a joint venture with the Grameen Group.

● About our biofuel business
In the biofuel business, which aims to solve the problem of Climate Change, in recent years we have been conducting research and development ^*6,7 to maximize and optimize the production and utilization of biomass for use as a feedstock for biofuels in Malaysia, as well as a project ^*8,9 to construct and operate a commercial biofuel plant in collaboration with Petroliam Nasional Berhad and Enilive SpA, two of the world's leading integrated energy companies.

Mitsui will continue to strive to build a stable procurement system for raw materials for SAF and contribute to the further development of Bangladesh.

About Grameen Euglena
Grameen Euglena is a local joint venture between Grameen Group, founded by Dr. Muhammad Yunus, the first Bangladeshi Nobel Peace Prize winner, and Euglena, whose philosophy is "Sustainability First". The joint venture was established as part of Yunus Social Business, which aims to improve the food situation in Japan and the incomes and livelihoods of the poverty-stricken rural communities in Bangladesh.
https://www.grameeneuglena.com/

About Euglena Co., Ltd.
In 2005, they succeeded in establishing the world's first outdoor mass cultivation technology for edible microalgae Euglena (Japanese name: Midorimushi). They define Euglena philosophy as "Sustainability First" and are engaged in the development and sale of foods and cosmetics using microalgae such as Euglena and Chlorella, the production and development of biofuels, the provision of genetic analysis services, and the sustainable agritech field that utilizes unused resources. Since 2014, they have been continuously implementing the "Euglena GENKI Program" to deliver nutritious Euglena cookies to children in Bangladesh.
https://euglena.jp

*2 Oilseed crops: Crops cultivated for the purpose of extracting oil.
*3 Euglena GENKI Program: https://www.euglena.jp/genki/

*4 FS: An abbreviation for Feasibility Study. Investigating and verifying the feasibility of a new business venture.

*5 Global South countries: ASEAN, India, the Middle East, Africa, Latin America, Pacific island countries, etc.

*6 News release dated May 1, 2023, "Euglena opens Tropical Biomass Technology Research Institute in Malaysia" https://www.euglena.jp/news/20230501/
*7 News release dated August 28, 2024: “Euglena Co., Ltd. and PETRONAS Research Sdn. Bhd. of Malaysia enter into comprehensive joint research agreement on large-scale production technology of microalgae for biofuel feedstock” https://www.euglena.jp/news/20240828-2/
*8 News release dated December 14, 2022, "Euglena, PETRONAS, and Eni jointly consider a biofuel production plant construction and operation project in Malaysia" https://www.euglena.jp/news/20221214-2/
*9 News release dated July 26, 2024: “Euglena, PETRONAS, and Enilive complete final investment decision for biofuel production plant construction and operation project in Malaysia” https://www.euglena.jp/news/20240726-2/