Daiichi Jitsugyo And Agro Ludens Complete Installation And Commence Operations Of Large-Scale Demonstration Facility For Commercializing Rice-Derived Mycoprotein And Bioethanol At Agro Ludens Nasu Factory

Daiichi Jitsugyo Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; Representative Director, President & COO: Yuji Funawatari, hereinafter “DJK”) and Agro Ludens Inc. (Headquarters: Chiyoda-ku, Tokyo; Representative Director: Kiyotaka Saga; hereinafter "Agro Ludens") announce the completion of installation and the commencement of operations at a large-scale demonstration facility (hereinafter "the Demonstration Facility") for the commercialization of rice-derived mycoprotein and bioethanol at the Agro Ludens Nasu Factory (hereinafter "Nasu Factory") ,located in Otawara City, Tochigi Prefecture.

DJK and Agro Ludens established a strategic partnership in 2022 and have since been actively advancing technology development toward the commercialization of rice-derived mycoprotein and bioethanol.

To date, Agro Ludens has demonstrated the market potential of rice-derived mycoprotein^*1 through domestic exhibitions and prototype testing. Currently, with business viability enhanced by the establishment of stable mass-production technology and the diversification of feedstock, Agro Ludens is actively advancing this initiative.

This initiative has been pursued under the "MAFF Small/Startup Business Innovation Research (SBIR) Program" with DJK's expertise in plant engineering and equipment implementation. The installation and construction of production equipment at the Nasu Factory represent a joint achievement by both companies.

The Demonstration Facility serves as a scale-up verification hub for proprietary technology that co-produces mycoprotein and bioethanol using rice as feedstock. Through continuous operation of this facility, both companies will verify process reproducibility, economic feasibility, and operational stability, while accelerating the establishment of a framework for stable supply of rice-derived mycoprotein.

Operating data acquired from the Demonstration Facility will be utilized in future commercial plant design, establishing a design foundation for mass production. This approach goes beyond single-site production and advances technology standardization with an eye toward multi-site expansion.

Additionally, both companies are jointly examining CAPEX^*2 for commercial plants in Global South^*3 regions. With DJK's diverse expertise as a comprehensive machinery trading company and its strength in global networks, this initiative targets broader deployment of operations domestically and internationally. The goal is to construct a seamless end-to-end model covering feedstock procurement, plant design and construction, and operations.

Building on insights gained from the Demonstration Facility, both companies aim to establish and scale up commercial plants producing:

• Rice-derived mycoprotein: approximately 5,000 tons annually
• Bioethanol: approximately 10,000–20,000 kiloliters annually

DJK and Agro Ludens will continue to deepen their partnership and advance the social implementation of technologies that contribute to the simultaneous supply of food and energy.

^*1 Rice-Derived Mycoprotein:
Mycoprotein is a next-generation protein produced using filamentous fungi such as mushrooms and koji. Agro Ludens possesses proprietary technology (Patents No. 7264566 and 7441567) for manufacturing mycoprotein by fermenting rice protein using koji mold. The rice-derived sugar solution obtained during manufacturing can be utilized as high-quality rice syrup in food applications as well as in brewing and biofuel sectors.

^*2 CAPEX:
Capital expenditure allocated to the acquisition and improvement of fixed assets such as production equipment, buildings, and IT infrastructure.

^*3 Global South:
A collective term for emerging nations in Asia, Africa, and Latin America located in the Southern Hemisphere.