Monday, December 27, 2021 | The Japan Times | 7

sustainable japan

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produced by The Japan Times CubeStartup Euglena has global goals for its microalgae
ESG Talk
TOMOKO KAICHICONTRIBUTING WRITER

Euglena Co., established in 2005, is theworld’s first company to succeed in growing large amounts of the microalgae
euglena for human consumption in an
outdoor facility, a feat once believed tobe effectively impossible. The company
operates businesses that use euglena
to make products from health foods tobiofuels.
“The mission of a startup is to create
something from nothing,” founder Mitsuru Izumo said. “If you’re going to starta company, you should take on the mostdifficult challenge in Japan or the world.
That is a startup’s reason for existence.”
During summer vacation in his freshman year in college, Izumo visited Bangladesh and was shocked to witness theplight of children suffering from malnutrition. He wished to “find something nutritious that can make the children healthy”
and began studying nutrition. This led
him to learn about euglena. He continued his studies, taking advantage of the“treasure mountain of knowledge” accumulated at the university, and eventually
established the technology to grow large

amounts of euglena outdoors. Until then,the microalgae could only be grown inindoor labs.

respective strong technologies and work
together, I am sure we can make Japan carbon-neutral by 2050, and we must do it.”Izumo predicts a “major shift in thevalues of society” will take place in 2025
and will drive solutions to key issues suchas climate change and poverty. His prediction is based on the expected demographic shift in which millennials and thefollowing Generation Z will come to makeup the majority of the working-age population between 15 and 64 years old. “Manymillennials are skeptical of the conventional capitalism that places top priority
on profits and wish to spend their lives
contributing to solving issues for society,”said Izumo, who was born in 1980, at thestart of the millennial generation. Whatcan businesses can do to avoid becoming
left behind in an age where millennials
make “sustainable choices” as consumers?
Izumo had a clear answer: “Take advantage of universities, young people, venturecompanies and startups.”

All ‘five F’s’ of biomass

Since its foundation, Izumo said, theEuglena company has given top priority
to developing the technology to produce
the “five F’s” of biomass — food, fiber, feed,fertilizer and fuel — using its namesake
microalgae and then promoting their use
in society. The company has marketed
foods and cosmetics derived from euglena
and is working to develop animal feed,fertilizers and bioplastics. The company
expects its next-generation biodiesel fuel,Susteo, will contribute to achieving Japan’s
goal of becoming carbon-neutral by 2050.
Susteo, made from used edible oil andoil from euglena, produces carbon dioxide when burned, but because euglena
and the plants from which the edible oil
is derived absorb carbon dioxide throughphotosynthesis while they grow, thecompany says the fuel can contribute tomaking Japan carbon-neutral. Japanese
regulations currently limit the use of biodiesel in mixed diesel fuel to no morethan 5% because higher levels may cause
engine trouble or lead to lower emission
performance. The Euglena company,
however, enlisted the assistance of Isuzu
Motors Ltd. onengine tests andsuccessfully developed the biodiesel,
which can replaceordinary diesel
entirely, eliminating the need for
petroleum. Susteo
is recognized ashaving the same
grade and quality
as ordinary diesel
under both theMitsuru Izumo established Euglena Co., in 2005, the world’s first comJapanese Industrialpany to succeed in growing large amounts of the microalgae euglena forStandards and thehuman consumption in an outdoor facility. HIROMICHI MATONOGreening and digitalizationMitsuru Izumo, president of Euglena Co. HIROMICHI MATONO

Act on the Quality Control of Gasoline
and Other Fuels. The company says it canbe used in engines of common buses andtrucks safely and without worries.

Reducing transport emissions
In Japan, emissions of carbon dioxide total
about 1.1 billion tons annually. The power
sector emits the largest amount, about 400
million tons. The Euglena company aims
to reduce emissions in the transportation
sector, the third-largest emitter at 200 mil-lion tons.
“There are many people who thinkbiodiesel fuel doesn’t contribute muchto reducing CO2 emissions because they
assume it can be used only 5% or lower
in the mix,” Izumo said. “But Susteo canentirely replace conventional diesel fuel.”He added: “We are convinced Susteo,
which took us a decade to develop, canbecome a trump card for reducing CO2
emissions from the transportation sector. If relevant companies combine theirTimes Gallery

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“The key challenges for Japan are greening and digital transformation,” he said.
“There are many untapped technologies inuniversities that can help promote greening, and businesses should explore more
opportunities to work with universities
on joint research projects.” He continued:“Digital transformation should come naturally to young millennials, because they
are digital natives. Companies can buy
venture companies or startups [with superior technologies and ideas] or work withother entities through open innovation.
I’m sure greening and digital transformation can be achieved if we can develop aculture where companies are born one
after another and take active roles.”Izumo’s experience in Bangladesh,which led him to learn about euglena, also
led to the launch of the Euglena Genki Program, which provides nutritious euglenacontaining cookies to the country’s

Izumo distributes nutritious euglena cookies
to Bangladeshi children. EUGLENA CO. LTD.

children free of charge. A six-cookie package can compensate for the daily nutritional shortfall of Bangladeshi children,
according to the company. Part of the salesof products from the Euglena group andpartner companies, including foods andcosmetics, are used to fund the program.
This allows consumers to participate bypurchasing them. People who support theprogram have been gradually increasing.
The program initially delivered packages
for 1,000 children a day, but the number
has grown to 10,000.
Climate change and poverty are bothglobal issues. If Japan succeeded in reducing its own emissions of carbon dioxide
but other countries continued to discharge
large amounts, the problem would remain.
“We must actively export the initiatives
and technologies that have proven successful in Japan and work to expand theiruse overseas,” Izumo
said. “I want to let theworld know about theexistence of Japanesestartups that are working on global-scale issues.”
The ESG Talk series are interviews with business leaders
who are active proponents of
ESG investing and practices inJapan.