Basic Plan for the Promotion of

Biomass Utilization

September 2016

Provisional Translation

Table of contents

Preface Situations Surrounding the Biomass Utilization ...................... 1

(Purpose of the Promotion of Biomass Utilization) ........................... 1

(Change after formulating the previous basic plan) .......................... 1

(Status of Achievement of the Goals of the Previous Basic Plan) ............. 2

(Valuation and Issues on the Previous Basic Plan) ........................... 3

Section 1. Basic Policy on Measures Regarding the Promotion of Biomass Utilization

......................................................................... 5

1. Comprehensive, Integrated and Effective Promotion ........................ 5

2. Prevention of Global Warming ............................................. 5

3. Formation of a Recycling-Oriented Society ................................ 6

4. Development of Industries and Strengthening International Competitiveness 6

5. Revitalization of Rural Areas ............................................ 6

6. Maximum utilization in accordance with the characteristics of each type of

Biomass ..................................................................... 7

7. Diversifying Source of Energy Supply ..................................... 7

8. Promoting Independent-Minded Efforts in areas ............................ 7

9. Fostering social momentum ................................................ 8

10. Ensuring Stable Supply of Foodstuff and Wood ............................ 8

11. Consideration for Environmental Conservation ............................ 8

Section 2. Goals to be achieved by the country regarding the promotion of biomass

utilization ............................................................. 10

1. Society to be realized in the future .................................... 10

2. Concept on the Goal Setting in 2025 ..................................... 10

3. Goal in 2025 ............................................................ 11

(1) Expansion of Biomass Usage ............................................. 11

(2) Formulating the Plan for Promoting Biomass Usage ....................... 14

(3) Scale of Biomass Industry .............................................. 15

Section 3. Measures to be taken comprehensively and systematically by the

government regarding the promotion of biomass utilization ............... 16

1. Maintenance the Infrastructure required for Biomass Utilization ......... 16

(1) Strengthening the sustainable efforts which economic efficiency was ensured

........................................................................... 16

(2) Promoting the efforts to give back to a region ......................... 16

(3) Communication of information for the promotion biomass utilization ..... 17

2. Creating businesses to supply biomass or biomass products, etc. ......... 17

(1) Promoting 6th Industry in Rural Areas .................................. 17

(2) Promoting the Utilization of Sewage Sludge ............................. 18

(3) Promoting the Utilization of Woody Biomass ............................. 18

(4) Strengthening the efforts linked to the reduction of greenhouse effect gas

........................................................................... 18

3. Research & Development and Diffusion of Technology ...................... 19

4. Development and Securing Human Resources ................................ 19

5. Promoting the Utilization of Biomass Products ........................... 19

(1) Expanding the introduction of renewable energy by biomass power generation

........................................................................... 19

(2) Expanding the diffusion of biomass heat utilization .................... 20

(3) Promoting the efficient utilization of biogas .......................... 20

(4) Promoting the advanced utilization in accordance with biomass characteristics

........................................................................... 21

(5) Promoting multistage utilization in accordance with regional circumstances

........................................................................... 21

6. Promoting spontaneous activities of private bodies, etc. ................ 21

7. Promoting the activities of local governments ........................... 21

8. Ensuring and promoting international cooperation ........................ 22

9. Collecting domestic and overseas information, etc. ...................... 22

10. Increasing the nation's understanding .................................. 22

Section 4. Matters on Research and Development of Technologies regarding Biomass

Utilization ............................................................. 24

1. Basic perspective in promoting research and development of technologies . 24

2. Research and Development of technologies to promote practical application .

........................................................................... 24

(1) Development of Sustainable Biomass Utilization Technologies ............ 24

(2) Creation of products with high added value ............................. 25

(3) Expansion of Biomass Utilization by Mixed Utilization, etc. ............ 25

(4) Establishment of Technologies to Promote Efficient Utilization of Biomass

........................................................................... 25

3. Research and Development of Technologies Linking to Wider Dissemination of

Biofuel .................................................................... 26

(1) Promoting Biofuel Utilization Made From Herbaceous Plants and Arbors ... 26

(2) Development of Next-Generation Biofuels by Micro-algae, etc. ........... 26

4. Research and Development of Technologies to Build Biomass Refinery ...... 27

(1) Development of Technologies to Convert Biomass to Effective Substances

Efficiently ................................................................ 27

(2) Development of Products in Anticipation of Future Demands .............. 27

Section 5. Required Matters to Promote Measures Regarding the Promotion of Biomass

Utilization Comprehensively and Systematically .......................... 28

1. Appropriate Role Sharing Among Various Stakeholders and Strengthening of

Collaboration and Cooperation .............................................. 28

(1) Roles of Local Governments ............................................. 28

(2) Roles of Farmers, Forestry Workers, and Fishery Workers ................ 28

(3) Roles of Manufacturers of Biomass Products, etc. ....................... 29

(4) Roles of Non-Profit Organizations ...................................... 29

(5) Roles of the People .................................................... 29

2. Inspection of the Progress Situation of Measures and Review of the Plan . 29

1

Preface Situations Surrounding the Biomass Utilization

(Purpose of the Promotion of Biomass Utilization)

Biomass is the concept to represent the mass of biotic resources, and the

"resource of organic matters derived from animals and plants (except for fossil

resource)". Biomass is sustainable and renewable resources as long as life and solar

energy exist within our life cycles, it is possible to utilize them for a wide

variety of scenes in the life of the people.

The utilization of Biomass as energy or products is to contribute to resolving

the issues Japan faces, such as the revitalization of rural areas, the prevention

of global warming, and the formulation of a recycling-oriented society. It is

strongly being required to accelerate the promotion of its utilization.

(Change after formulating the previous basic plan)

Based on the Fundamental Law of Promoting Usage of Biomass, enacted in June 2009

(Act No. 52 of 2009) Hereinafter referred as "Basic Act"), the Basic Plan for the

Promotion of Biomass Utilization (hereinafter referred as "Basic Plan") was decided

by the Cabinet in December 2010, and various efforts have been carried out to achieve

the set goals.

Under such circumstances, as a result of the Great East Japan Earthquake occurred

in March 2011, the importance to attempt to strengthen self-sufficient/ distributed

energy supply system utilizing local resources has been increasing, and in July

2012, the Feed-in Tariff Scheme has become effective to expand the implementation

of renewable energy power, and the implementation of Biomass power generation is

expanding.

The Basic Energy Plan decided on by the Cabinet in April 2014 expressed the policy

to continue the implementation of biofuel, while reflecting international trends

and trends of next-generation fuel. As the long-term energy demand in July 2015

anticipates 39.4 to 49 billion kWh which are equivalent to 3.7 to 4.6% of power

generation mix (6.02 to 7.28 million kW for installed capacity) as the Biomass power

generation to be introduced in 2030, the expectation toward Biomass energy

utilization is increasing.

In addition, in September 2012, the strategy of Biomass commercialization

(decided on September 6, 2012) which compiled Biomass utilization based on

sustainability was formulated to achieve the goal of the Basic Plan. We affirmed

to selectively promote the commercialization by the selection and concentration

2

of the technologies and Biomass with the collaboration among the related ministries

and agencies, municipalities, and business operators.

On the other hand, such as that the high-cost structure in the production of

domestic biofuel could not be improved and business independence was abandoned due

to unprofitability and the large-scale verification business of Biomass became

discontinuance, the efforts which do not progress as expected have become found

and it shows that the environment surrounding Biomass has been significantly

changing.

(Status of Achievement of the Goals of the Previous Basic Plan)

With presenting the society in which Biomass utilization to be realized in the

future has progressed, the Basic Plan sets the goals regarding the expansion of

respective Biomass utilization, the formulation of the promotion plan of Biomass

utilization, and the size of new Biomass industry to realize its future image from

three perspectives: "a sustainable society with less environment impact",

"revitalization of agriculture, forestry, and fishery business/ rural areas", and

"creation of new industry".

(1) Expansion of Biomass Utilization

The equivalent value in carbon amount of Biomass usage is approximately 24

million tons of carbon, compared to the goal of 26 million tons of carbon, and

the achievement rate is approximately 92%.

For the utilization rate set for each type of Biomass, it nearly achieves the

goal in livestock excrement, black liquor, paper, reminder materials of sawmill

factory, etc., and wood chips derived from construction, on the other hand, the

rate in food waste, non-edible parts of crop, and forest remaining wood is

slightly low.

For the production quantity of energy crop, although the goal which is 400

thousand tons of carbon in the equivalent of carbon amount was set, the quantity

is mainly based on research and demonstration, and almost no production is

currently undertaken.

(2) Formulating the Plan for the promotion of Biomass Utilization

When focusing only on the municipal plans for the promotion of Biomass

utilization, the number of municipalities which formulated the plan for the

promotion of Biomass utilization is 33 municipalities, compared to the goal of

3

600 municipalities, and the achievement rate is approximately 6%, which is very

low.

On the other hand, the number of basic units of governments having the plans

as an indicator to promote Biomass utilization such as Biomass town plan or

Biomass industry town plan is 361 municipalities excluding the duplicate, and

the achievement rate reaches approximately 60%.

The number of prefectures which formulated the plan for the promotion of Biomass

utilization is 16 prefectures, compared to the goal of all prefectures, and the

achievement rate is approximately 34%.

(3) Scale of New Biomass Industry

For the market size of Biomass industry, it is approximately 350 billion yen

including economic ripple effect compared to the goal of 500 billion yen, and

the achievement rate is approximately 70%.

The market size as of 2010 (at the time of formulating the previous Basic Plan)

was approximately 120 billion yen including economic ripple effect, and it is

recognized that the market was expanded in approximately 230-billion-yen size

in five years.

(Valuation and Issues on the Previous Basic Plan)

The efforts to promote Biomass utilization have mostly been progressing smoothly,

and the goals are also achieved in a certain level.

In particular, due to increased usage of woody biomass and greatly increasing

efforts on power generation, energy use of Biomass becomes established. It can

be evaluated that the increased examples to contribute the creation of industries

and employment through expanding the market size of Biomass industry are the results

of the measures promoted in the Basic Plan.

On the other hand, regarding the efforts for domestic biofuel and the material

use to be used as raw materials for products, due to the instability of raw material

procurement and the increase of production cost, these are not in the situation

to obtain sufficient competitiveness against the competitive products derived from

fossil resources. Even the energy use is biased to the efforts to sell electricity

by utilizing the Feed-in Tariff Scheme, so it is difficult to say that the efforts

to circulate within a region and the heat use are adequately progressing.

In the background occurring such events, in addition that there is a challenge

to ensure economy for the efforts, it can be considered to be a problem that a

4

sustainable business model to be led by a region other than the efforts to sell

electricity has not been established.

Furthermore, for the causes that the utilization rate of food waste, non-edible

parts of crops, and forest remaining wood has not been increased as expected, it

is presumed that the following is related:

・For food waste, although a certain achievement can be recognized to the

improvement of recycling rate, etc. in business-related waste by food-related

business operators, as it goes to the downstream of food circulation close to

consumers, the recycling rate of recyclable food resources becomes low. In

addition, for household solid waste as well, the efforts according to

regional circumstances are not also developed adequately.

・For non-edible parts of crops, the utilization amount has not been increased,

and the required technologies and cost to utilize it as Biomass have not reached

the level to obtain competitiveness.

・For forest remaining wood, as a result of that the increase of heat supply boiler

and power generation facilities, its utilization has been gradually increased,

but it is a challenge to build a stable supply system by intensification of

operations and network maintenance, etc.

When formulating this Basic Plan, we will clarify the fundamental direction for

the measures to be tackled from now, based on these issues thoroughly.

5

Section 1. Basic Policy on Measures Regarding the Promotion of Biomass

Utilization

1. Comprehensive, Integrated and Effective Promotion

Thanks to the temperate and pluvial climate condition, the Biomass exists richly

in our country. However, since many biomass exists "widely and thinly", it is

important to improve economic efficiency in its utilization. To do so, it is

important to comprehensively carry out any initiatives to effectively utilize

biomass, including the establishment of an efficient collection system,

utilization of a wide variety applications, and standardization and normalization

of biomass products.

Therefore, we will promote a comprehensive utilization system which can connect

from generation to utilization of biomass with efficient processes, by a

collaboration of measures among biomass suppliers such as farmers, forestry workers,

and fishery workers, manufacturers of biomass products, administrative agencies,

and related ministries and agencies.

2. Prevention of Global Warming

The problem of climate change is a global problem, and it is required to

collaborate with each country to solve the problem. In July 2015, Japan expressed

that, as INDC (Intended Nationally Determined Contribution) for reduction of

greenhouse gases, 26.0% compared to 2013 will be reduced in 2030 (25.4% reduction

compared to 2005) by ensuring the emission reduction and absorbed amount in Japan.

In the 21st session of the Conference of the Parties (COP21) to the United Nations

Framework Convention on Climate Change held in December of the same year, Paris

Agreement was adopted, which is the fair, effective and legal framework after 2020

that all countries participate. Based on these circumstances, in Japan, the

comprehensive plan of our country, the Plan for Global Warming Countermeasures was

decided on by the Cabinet in May 2016.

Carbon dioxide released by burning biomass is the one absorbed from the atmosphere

by photosynthesis in the growth process of living beings, and biomass has the

characteristic called "carbon neutral" which does not increase carbon dioxide in

the atmosphere. We will promote biomass utilization to contribute to the prevention

from global warming by realizing a low-carbon society through the substitution of

the energy and products derived from fossil resources to those derived from biomass

and reducing the release of carbon dioxide which is one of greenhouse gases.

6

3. Formation of a Recycling-Oriented Society

The conventional lifestyles based on mass-production/consumption/disposal cause

concerns about depletion of resources centered on fossil resources, destruction

of nature by large-scale resource consumption, global warming issues by an emission

of greenhouse gases, and inhibition of appropriate resource renewal in the natural

world. These issues are deepening in a global scale on a multilayered basis and

mutually affecting.

Therefore, it is necessary to review a conventional society and a lifestyle of

the people to advance further conversion to a recycle-oriented society which

consumption of natural resources is restrained and environmental loads are reduced

as much as possible by ensuring advanced resource renewal in a society.

With the consideration of such concept, we will comprehensively promote

generation control/ reuse/ recycle/ heat recovery of waste while ensuring an

appropriate processing as a basis in accordance with the basic principles set forth

in the Basic Act on Establishing a Sound Material-Cycle Society (Act No. 110 of

2000), as well as we will accelerate the transition to a recycling-oriented society

by further promoting comprehensive biomass utilization which is sustainable and

renewable resources brought from blessings of nature.

4. Development of Industries and Strengthening International Competitiveness

We will develop environment-friendly industries to utilize biomass to energy

source and products, and through the development of innovative technologies and

products, and creation of pioneering business models, we will contribute to the

realization of "becoming an environmental and energy power rich nation" which

manages both the creation of economic growth of the country and job opportunities

and the reduction of worldwide greenhouse gases.

5. Revitalization of Rural Areas

The utilization of biomass richly existing in rural areas is one of the important

initiatives of "Senary industrialization of rural areas" to encourage the expansion

of regional business and the creation of new business condition by integrating

agricultural, forestry and fishery business as the primary industry and businesses

pertaining to the secondary and ternary industries related to them.

Since it is important to create a locally owned and sustainable business by

utilizing local biomass and to connect the economic value generated here to the

7

revitalization through development of agriculture, forestry, and fishery

businesses and returning profits to regions, we will create new added value to rural

areas to ensure employment and income as well as realize the regeneration of vibrant

rural areas.

6. Maximum utilization in accordance with the characteristics of each type of Biomass

In order to maximize biomass utilization as a resource, it is important not only

simply to conduct combustion of biomass but also to repeat utilizing a product in

an order from higher values as much as possible, and at last, to conduct multi-stage

utilization such as energy utilization by combustion, while considering economic

efficiency and reduction effects of greenhouse gases by LCA (Life Cycle Assessment).

In consideration with this, we will promote the establishment of utilization

systems to maximize biomass utilization in accordance with the characteristics of

each type by systematizing utilization technologies at each stage of biomass as

a system.

7. Diversifying Source of Energy Supply

In recent years, the international situation regarding energy has unstable

elements, and it is important for Japan with poor energy resources to diversify

source of energy supply from the point of energy security. Since the Basic Energy

Plan (decided on by the Cabinet in April 2014) sets forth that renewable energy

is positively promoted its introduction, as well as that effective utilization of

renewable energy heat results in effective initiatives to make demand structure

more efficient, we promote biomass utilization as energy source, which is renewable

energy to contribute strengthening Japan's energy security, while considering

about ensuring stable and sustainable energy supply and economic efficiency.

8. Promoting Independent-Minded Efforts in areas

In order to promote biomass utilization, based on the characteristics such as

a large amount of moisture content, taking a lot of places, and low preservation,

etc., it is important to build a geographically distributed utilization system

which biomass is efficiently utilized as energy and products in a region, and to

link to the expansion of a virtuous circle of a regional economy.

Furthermore, it is effective to build a geographically distributed utilization

system even from the point of disaster prevention since it becomes possible to

ensure self-sustained energy in a region, even if any trouble occurs in ensuring

8

energy such as electricity and fuel in a wide area due to a large-scale earthquake.

Therefore, we will promote inventive initiatives led by a region for biomass

utilization adapted to the biomass endowments in a region and to the natural/

economic/ social conditions of demands and supply of energy or biomass products.

9. Fostering social momentum

For a smooth promotion of biomass utilization, it is important to build a

comprehensive system including from production to utilization of biomass. To do

this, it is essential to obtain understanding and cooperation of all people

involving biomass utilization. We will foster a social momentum which every single

of citizen independently and positively tackles biomass utilization by spreading

about what biomass is closely related to citizens' life in an easy-to-understand

manner, for example, biomass utilization is effective as one of the measures to

reduce greenhouse gases emission.

10. Ensuring Stable Supply of Foodstuff and Wood

The unregulated use of agricultural, forestry and fishery products for producing

energy and products derived from biomass relatively reduces the required supply

amount of agricultural, forestry and fishery products for the existing purpose of

use, and may be in a danger of rising food prices and of destabilizing wood prices.

Especially, due to the rapid development of power generation by woody biomass, the

demand of wood chips in some regions get strained, and there are growing concern

that any trouble occurs to the supply for use of existing material.

For this reason, we will promote biomass utilization while combining material

use and energy use, while considering not to have drastic and significant impacts

on the stable food supply and the wood use in peripheral industries of existing

wood/ wood products manufacturers and livestock business operators.

11. Consideration for Environmental Conservation

Biomass is sustainable and renewable resource generated by living things, and

the biomass utilization generated by thinning of planted forest, management of

forest nearby human habitat, mowing at waterfront, and grass sampling in secondary

grasslands is what results in unique ecosystem preservation of rural areas and

satochi-satoyama (community-based forest areas and the surrounding countryside),

but when procurement and utilization are conducted, not only its sustainability

is impaired, but also it may be in a danger of impacting to peripheral biodiversity

9

and other natural environments.

Based on this, when promoting biomass utilization, we will promote its

utilization, while considering preservation of the living environment, ensuring

biodiversity, preservation and management of wildlife, and other preservation of

environment.

10

Section 2. Goals to be achieved by the country regarding the promotion of

biomass utilization

1. Society to be realized in the future

The previous Basic Plan has set the required goals to realize its future image

with presenting the desired society (goal for 2050) which has progressed the

following biomass utilization to be realized in the future so that each single

citizen can share the ideal society image which biomass utilization is advanced

and can promote biomass utilization systematically and efficiently.

・Realization of a sustainable society with less environmental impact (a society

to build biomass refinery to produce various fuel and products, and to progress

the substitution from petrochemicals to biomass products, and to build a

sustainable social system)

・Creation of a new industry and revitalization of agriculture, forestry, and

fishery business/ rural areas (production of the high added value products made

from biomass contributes economic growth, and agriculture, forestry, and

fishery business/ rural areas are revitalized in accordance with the expansion

of biomass supply)

・Realization of a new lifestyle centering on biomass utilization (selective

utilization of products or energy is progressed in accordance with change of

the people's awareness, and the growth of biomass industries is accelerated)

・Biomass utilization under international collaboration (it is to contribute to

the establishment of a sustainable biomass utilization system in the

international society)

2. Concept on the Goal Setting in 2025

Since the initiatives to promote biomass utilization have mostly been progressing

smoothly and it is not necessary to revise a society to be realized in the future,

we will inherit the pillars of goal setting in the previous Basic Plan and follow

the evaluation index shown below as it is.

・The goal regarding the expansion of biomass utilization from the point of the

realization of "a sustainable society with less environment impact”

・The goal regarding the formulation of a promotional plan of biomass utilization

from the point of the realization of "revitalization of agriculture, forestry,

and fishery business/ rural areas" and "a new lifestyle centering on biomass

utilization”

11

・The goal regarding the size of biomass industry from the point of the realization

of "creation of a new industry”

・For "biomass utilization under international cooperation", numeric targets will

not be set

For the numbers, the achievement of the goals set forth in the previous Basic

Plan is still en route, as well as it is assumed that the endowments of biomass

are reduced, and that the sophistication of business by selection and concentration

of technologies and biomass is encouraged. Since we cannot expect to add more

numbers because the steam of the drawn was lost and it is now the transition stage

moving to the ripening period, on the assumption that we will review them based

on the situation in 2020, we will inherit the numbers in the previous Basic Plan

as it is for the goal of 2015.

3. Goal in 2025

(1) Expansion of Biomass Usage

Through the expansion of biomass utilization, it is expected to substitute the

energy and products derived from fossil resources to biomass-derived.

While the endowments of waste biomass tend to decline over mid-/long-term,

considering that it is expected that the utilization rate of sewage sludge and

forest remaining wood is increasing, the goal is set to utilize approximately 26

million tons per year in the equivalent of carbon.

In addition, as the goal for each type of biomass, it is recommended to set the

following to promote advanced utilization which generates more economic value,

while considering the existing utilization methods.

Types of Biomass Present Annual

Generation Amount(*2)

Present

Utilization

Rate

Goals for 2025

Waste series

Livestock

excrement

Approx. 81 million

tons Approx. 87% Approx. 90%

Sewage sludge Approx. 78 million

tons Approx. 63%(*3) Approx. 85%

Black liquor Approx. 13 million

tons About 100% About 100%

Paper Approx. 27 million Approx. 81% Approx. 85%

12

tons

Food wastes Approx. 17 million

tons Approx. 24% Approx. 40%

Remainder

materials of

sawmill factory,

etc.

Approx. 6.4 millio

n tons Approx. 97% Approx. 97%

Wood chip derived

from construction

Approx. 5 million

tons Approx. 94% Approx. 95%

Unused

Non-edible parts

of crops

(except for plowing-in)

Approx. 13 million

tons Approx. 32% Approx. 45%

Forest remaining

wood

Approx. 8 million

tons Approx. 9% Approx. 30%

or

more

*1 The current annual quantity of generation and utilization rate are the one to have been collected as of March 2016 based on various statical data (including estimated values on some items).

*2 For black liquor, remainder materials of sawmill factory, etc., and forest remaining wood, it is dry weight. For other biomass, it is wet weight. *3 *3 The utilization rate of sewage sludge declined due to the impact of Great East Japan Earthquake.

① Livestock excrement

Since livestock excrement has already been utilized at a level close to the

physical recovery limit of approximately 90%, we will continue to utilize it,

as well as we will aim for that, in 2025, approximately 90% will be utilized by

promoting high energy utilization through carbonization/ burning processing and

methane fermentation gas in accordance with regional circumstances, while

considering about utilization of conventional fertilizers.

② Sewage sludge

For sewage sludge, the utilization rate which declined due to the impact of

Great East Japan Earthquake is on a track to recovery, and approximately 63% is

recycled mainly for construction materials and fertilizer. Following the partial

revision of Sewerage Law (Act No. 22 of 2015) in May 2015 and the addition of

the obligation to make effort pertaining to recycling as fuel/ fertilizer of

occurred sludge, we will aim that approximately 85% will be utilized in 2025 by

promoting energy utilization in methane fermentation gas/ solid fuel of sewage

13

sludge in accordance with regional circumstances.

③ Black liquor

For black liquor which generates at the stage of pulp production in a paper

mill, approximately 100% is conducted energy utilization mainly by direct

combustion, so its utilization will be continuously promoted.

④ Paper

For paper, approximately 81% has already been collected as waste paper to be

recycled. We will continuously promote utilization as recycling paper from now,

as well as aim for that approximately 85% is utilized in 2025 by promoting the

sophistication of energy recovery through conversion of waste to fuel in

accordance with a regional circumstance.

⑤ Food wastes

For food wastes, approximately 24% is utilized mainly for recycling to feed

and fertilizer of food-related business operators. The key is downstream of food

distribution which is difficult to separate waste or the improvement of waste

utilization ratio at household, but we will continuously promote recycling to

feed and fertilizer in accordance with regional circumstances. We will aim that

approximately 40% will be utilized in 2025 by promoting advanced energy

utilization in methane fermentation gas for those which is difficult to

recycling.

⑥ Remainder materials of sawmill factory, etc.

For remainder materials of sawmill factory, etc., approximately 97% which can

be considered as collection limit as it is now is recycled as wooden boards, paper

making stock, and energy, etc., so the utilization will be continuously promoted.

⑦ Wood chip derived from construction

For wood chip derived from construction, since we have set the goals of resource

recovery/ reduction rate in the Fundamental Policy and Construction Recycling

Promotion Plan 2014 based on the Construction Materials Recycling Law (Act No.

104 of 2000), and have carried out measures, approximately 94% have already been

utilized for various application such as paper making stock, board material,

litter for livestock, and energy, etc. We will continuously promote the

14

utilization to aim for that approximately 95% will be utilized in 2025.

⑧ Non-edible parts of crops

For non-edible parts of crops such as rice straw and rice hull, approximately

32% is utilized as feed and fertilizer, and fuel, etc. When including a

plowing-in to a farmland to support for soil fertility, approximately 88% is

utilized. We will plan to increase the utilization amount to aim for that

approximately 45% (approximately 90% including plowing-in) is utilized, while

considering the conventional utilization and ascertaining the energy utilization

by conversion of waste into fuel and progress of technologies on material

utilization including extraction of useful substances.

⑨ Forest remaining wood

For forest remaining wood, approximately 9% is utilized for the application

of heat utilization, etc. Since the demand as raw material for power generation

is expanding, it is expected to increase further utilization rate. We will

progress development of technologies for energy utilization including heat

utilization and cogeneration and for efficiently converting biomass into high

added value substances to create new applications, as well as we will promote

consolidation of operations and maintenance of road network to build a stable

and efficient supply system of raw timbers, and aim for that approximately 30%

or more will be utilized in 2025.

(2) Formulating the Plan for Promoting Biomass Usage

The Fundamental Act regulates that prefectures and municipalities must strive

for formulating a promotional plan of prefectural biomass utilization or a

promotional plan of municipal biomass utilization with the consideration of the

Basic Plan.

For the prefectural promotion plan for biomass utilization, in order to promote

independent-minded initiatives for biomass utilization exerting the originality

and ingenuity of a region, the goal is that all prefectures formulate in 2025.

In addition, for the municipal promotional plan for biomass utilization, based

on co-existing of similar measures, we will encourage them to switch from a biomass

town plan to a municipal promotional plan for biomass utilization, as well as we

will set the goal that 600 municipalities (equivalent to one-third of all

municipalities) formulate their own plans after planning to integrate measures

15

including making it in a condition that a municipal promotional plan for biomass

utilization has already formulated at the time of applying for a biomass industry

town plan.

In promoting biomass utilization, based on that it is important to build a

geographically distributed utilization system that biomass is efficiently utilized

as products or energy in a region, with their determination, the municipalities

which have formulated a municipal promotional plan for biomass utilization strive

to calculate a rate of self-sufficiency (rate of local production for local

consumption) to indicate the ratio supplied by regional biomass regarding feed

utilization, compost utilization, and energy utilization in accordance with

regional circumstances or the characteristics of each biomass type. For example,

in energy utilization, it is desirable to calculate the rate of self-sufficiency

(the rate of local production for local consumption) by the method to calculate

the ratio of electric power obtained by biomass power generation derived from the

municipality among total electricity demand of the municipality.

(3) Scale of Biomass Industry

The development of environment-friendly industries to utilize biomass richly

existing mainly in rural areas to energy and products can strike a good balance

among the economic growth of Japan, the creation of job opportunities, and the

reduction of greenhouse gases, and is also the one to contribute the realization

of "becoming an environmental and energy power rich nation".

For the industries utilizing biomass, in addition to promoting the advanced

utilization generating more economical and higher value products, and based on that

it is expected that the increase in energy demand by the utilization of the Feed-in

Tariff Scheme, we will set the goal to establish the 500 billion market in 2025

on the assumption that industrialization of energy or products utilized biomass

is developed.

16

Section 3. Measures to be taken comprehensively and systematically by the

government regarding the promotion of biomass utilization

Based on the goals regarding the promotion of biomass utilization in Section 2,

the measures to be taken comprehensively and systematically by the government to

achieve them are represented as follows.

If policy supports becomes necessary and urgent by the Basic Plan and other Acts

when promoting measures, we will employ every single of policies such as

regulations/ budget/ tax/ financial measures to build a policy system to ensure

a maximum effect and overall optimization while minimizing national burden.

1. Maintenance the Infrastructure required for Biomass Utilization

(1) Strengthening the sustainable efforts which economic efficiency was ensured

In order to promote commercialization utilizing regional biomass, it is necessary

to build a consistent system to ensure economic efficiency from production of raw

materials to collection, transportation, manufacture and utilization.

In order to utilize biomass existing widely and thinly in rural areas, since it

is important to create a mechanism to stably procure the amount that can be

commercialized at an expense corresponding to a product price by collaborating

between local governments and business operators, we will promote the maintenance

of agriculture, forestry and fishery production infrastructure, which is the basis

of biomass production, and building of efficient and unified production,

distribution, and processing system to enable advanced utilization of unused

biomass such as forest remaining wood.

In addition, we will develop new agricultural production activities ensuring

economic efficiency through effectively utilizing residual heat accompanied with

biomass power generation and by-product such as digestive fluid generated during

biomass manufacturing process as heating and fertilizer of agricultural

facilities.

(2) Promoting the efforts to give back to a region

In order to create vitality of rural areas, it is important to support various

initiatives in accordance with a regional circumstance and to promote community

building centered on biomass industry without biased only by the initiatives of

selling electricity utilizing the Feed-in Tariff Scheme.

For this reason, we will support for a formulation of a plan resulting to a

17

virtuous circle of regional economy and launch of a community-based company,

including the promotion of regional utilization of energy and products derived from

biomass.

In addition, we will increase profitability in high-degree application to produce

more economically valued products and by supporting facility maintenance to tackle

multi-stage utilization to thoroughly use limited resources, and we will establish

businesses to utilize regional biomass as a sustainable and self-sustainable model

and promote initiatives to return gained profits to a region.

(3) Communication of information for the promotion biomass utilization

In order to promote biomass utilization, we will contribute independent and

active initiatives of biomass utilization by all citizens through actively

promoting data collection and maintenance of biomass utilization rate and

communication of related information.

We will also evaluate regional industries utilizing biomass from many directions,

and we will present not only energy balance and business balance but also

sustainable business models with the consideration of external effects. Through

widely sharing know-hows of these success cases, we will promote the horizontal

expansion of initiatives.

2. Creating businesses to supply biomass or biomass products, etc.

(1) Promoting 6th Industry in Rural Areas

The utilization of biomass richly existing in rural areas is one of the important

initiatives of "Senary industrialization of rural areas" to encourage the expansion

of regional business and the creation of new business condition by integrating

agricultural, forestry and fishery business as the primary industry and businesses

pertaining to the secondary and ternary industries related to them.

In order to maximize utilization of regional resources derived from rural areas

including biomass, we will dynamize local industries centered on agricultural,

forestry and fishery business, as well as promote Senary industrialization

utilizing them and promote measures for increasing the incomes related to rural

areas.

In addition, we will analyze success factors and future issues about the efforts

which succeeded in creating a new value through Senary industrialization, etc. and

spread the on-site initiatives based on the results.

18

(2) Promoting the Utilization of Sewage Sludge

Following the partial revision of Sewerage Law and the addition of the obligation

to make effort pertaining to recycling as fuel/ fertilizer of occurred sludge, we

will promote energy utilization in methane fermentation gas/ solid fuel of sewage

sludge in accordance with regional circumstances and green farm utilization through

initiatives of fertilizer/ collecting phosphorus.

Moreover, from the point of resource circulation in a region and regional

revitalization, in a sewage‐treatment plant and waste treatment plant, we will

accept biomass generated in regions of food waste and night soil or septic tank

sludge such as garbage along with sewage sludge and promote effective utilization.

(3) Promoting the Utilization of Woody Biomass

In order to utilize Japan's forest resources which have met a full-scale period

of utilization time in a sustainable manner, we will promote consolidation of

operations to stably supply woods with low cost, maintenance of road network,

development and introduction of high-performance forestry machines, and

development and diffusion of effective collecting and transportation system. In

addition, we will provide information regarding wood supply in a region and

strengthen a system to intend to match suppliers and actual users, as well as we

will spread the utilization of domestic logs including thinned timbers to intend

to grown commercialization of forestry and wood industry by promoting comprehensive

utilization of woody biomass including the expansion of the utilization of woody

materials such as boards, the utilization of unused thinned timbers in woody biomass

power generation facilities, the building of a cogeneration system in a region,

the improvement performance of a biomass boiler whose fuels are chips/ pellets/

firewood.

(4) Strengthening the efforts linked to the reduction of greenhouse effect gas

In order to achieve the reduction goal in INDC (Intended Nationally Determined

Contribution) for reduction of greenhouse gases, it is necessary to promote

utilization of the system to authenticate reduction/ absorbed amount of greenhouse

gases emission as well as to convert energy and petrochemicals derived from fossil

resources into biomass-derived ones within a reasonable range.

For example, the heat utilization of energy significantly depends on fossil fuels

such as heavy fuel oil. While the emission amount of carbon dioxide accompanying

19

with that is serious, renewable energy heat has great potential. Therefore, we

will strengthen initiatives resulting in the reduction of greenhouse gases

including the promotion of spreading renewal energy heat more than the one of

renewable energy electricity in energy utilization of biomass.

3. Research & Development and Diffusion of Technology

It is essential to utilize advanced technologies in accordance with regional

characteristics for utilizing biomass efficiently and effectively. For this reason,

relevant ministries and agencies cooperate with each other to develop seeds of

technology by a basic and fundamental research, as well as we will plan to utilize

these seeds of technology and promote an advanced research and development by

industry-academia-government collaboration and improvement and systematization of

existing technologies.

The specific initiatives are indicated in matters on research and development

of technologies regarding biomass utilization in Section 4.

4. Development and Securing Human Resources

In order to strive for developing and ensuring human resources with expertise

regarding biomass utilization and those to contribute the promotion of biomass

utilization, we will promote initiatives to enhance the businesses of education,

research and diffusion.

Especially, in order to make regional initiatives based on municipal promotional

plan for biomass utilization become effectiveness, we will strive for consensus

building of a region by adjusting among various stakeholders in a region, and

develop core human resources who can effectively promote biomass utilization, while

considering the biomass endowments in a region and the demand conditions against

biomass utilization.

5. Promoting the Utilization of Biomass Products

(1) Expanding the introduction of renewable energy by biomass power generation

Due to the enforcement of the Feed-in Tariff Scheme for renewable energy in July

2012, the introduction of biomass power generation which can stably generate power

and is not affected by weather has been expanding.

Even in the Energy Basic Plan, biomass power generation is positioned not only

as an energy source which can be a power source to conduct stable power generation

but also as one to contribute revitalization of regions. The long‐term energy

20

supply‐demand outlook (decided on July 16, 2015) considered it as the power source

which can be stably operated regardless of natural conditions, and 39.4 billion

kWh to 49.0 billion kWh equivalent to 3.7% to 4.6% of power source configuration

are expected as the introduction amount in 2030.

On the other hand, since the issues including ensuring stable fuel supply and

demand & supply balance, and profitability is becoming apparent, we will promote

to maximize the introduction of biomass power generation harmonized with sound

development of agriculture, forestry, and fishery business, while paying attention

to these trends and balancing with inhibition of citizens' load toward the

realization of introduction amount indicated in the long‐term energy supply‐

demand outlook.

(2) Expanding the diffusion of biomass heat utilization

The approximately half of energy demand in Japan is heat, especially the majority

of energy consumption in agriculture production sites is accounted for by heat.

Since it is expected that heat utilization has higher efficiency than power

generation even from the point of biomass energy utilization and can contribute

cost reduction, we will actively promote heat utilization of biomass which becomes

a substitute of fossil fuel.

In addition, we will strengthen the initiatives of cogeneration to promote the

utilization of residual heat, which is not fully utilized now, generated in biomass

power generation.

However, in order to carry out heat utilization, since there are many conditions

to be considered, which are matching between demand and supply, difficulties of

utilization in a wide range, sustainability pertaining to appropriate fuel

procurement, etc., we will not only support the introduction of facilities but also

enhance a system of guidance and advice so as to progress initiatives after

sufficiently adjusting solutions of these issues in a region.

(3) Promoting the efficient utilization of biogas

Biogas generated by methane ferment of wet-type biomass such as livestock

excrement, sewage sludge, and food waste is often used for power generation now,

but from the point of spreading heat utilization, we will promote initiatives to

actively utilize as self-sufficient/ distributed energy source in a region such

as heat source of agricultural production sites and public facilities.

It is expected to promote the utilization as the substitution of town gas by

21

establishing a mechanism to purify and concentrate the generated biogas to supply.

In addition, for hydrogen derived from biogas produced by sewage sludge, we will

promote the initiatives to expand the supply to automotive fuel, etc.

(4) Promoting the advanced utilization in accordance with biomass characteristics

Biomass differs types and nature, the endowments, existing locations, demands

such as products or byproducts, distribution type, available applications, etc.,

depending on regions. Therefore, we will promote advanced utilization to generate

more economic and higher value products by leveraging technologies to convert to

materials, heat, electricity in accordance with each characteristic, while

considering the existing utilization methods.

(5) Promoting multistage utilization in accordance with regional circumstances

We will promote the multistage utilization to effectively and thoroughly use

limited resources such as collecting used biomass to recycle and utilizing

byproduct.

6. Promoting spontaneous activities of private bodies, etc.

We will provide information and advice so as to promote activities regarding the

promotion of biomass utilization which business operators, the people, and any

private bodies organized by them conduct spontaneously. In consideration of the

fact that it is important that these organizations initiatively involve to

promoting biomass utilization to play a leading role in a region, we will

effectively support the activities of these organizations.

7. Promoting the activities of local governments

We will encourage initiatives which a local government can build a mechanism to

effectively and efficiently utilize biomass existing in a region in accordance with

a regional circumstance. In addition, in order to ensure appropriate formulation

and implementation of measures regarding the promotion of biomass utilization

leveraging a regional characteristic by a local government, we will provide

necessary information such as systems regarding biomass utilization or cases to

become a model of initiatives. We will also seek cooperation or collaboration among

local governments as needed, as well as promote initiatives which recycling of food

waste and paper is propelled in accordance with a regional circumstance,

considering that municipalities play an important role in an administration of

22

general waste.

8. Ensuring and promoting international cooperation

In order to accelerate the promotion of biomass utilization under international

collaboration, we will conduct the formulation and diffusion of standards regarding

sustainable utilization of biomass, international collaboration for promoting

research and development regarding biomass utilization, and technological

cooperation for developing areas.

In addition, in eastern Asia regions with similar climate condition as Japan,

we will support to build a regional system of biomass utilization in the regions.

9. Collecting domestic and overseas information, etc.

In order to comprehensively, integrally, and effectively carry out the measures

to contribute to building and maintenance of sustainable initiatives regarding

biomass utilization in Japan, we will collect, organize, and utilize both domestic

and overseas information such as good practices and advanced technologies regarding

biomass utilization and biomass demand situation including exporting.

10. Increasing the nation's understanding

We will carry out the diffusion of the knowledge through the purpose of biomass

utilization, education/ promotion of study/ advertisement activities regarding

technologies utilized for biomass products so as to promote biomass utilization

by citizen's deep understanding and interests regarding biomass utilization. In

so doing, we will conduct public awareness by organically cooperating with the

activities related to other environments such as the formation of recycle-oriented

society. Especially for waste biomass, it is required to think from a different

angle and its penetration about that it can be utilized as a resource while assuming

appropriate processing.

Based on this, we will provide information widely about that waste biomass should

not only be simply thrown away but also be appropriately recycled as a raw material

of product or energy source. Simultaneously, we will also inform the information

that the utilization of forest remaining wood including thinned timbers, which is

unused biomass, results in the appropriate maintenance for forest by the expansion

of domestic wood utilization and contribution to sustainable fulfillment of

multifunctional roles forests including the prevention of global warming, the

23

preservation of the national land, and the water resources, and we will deepen the

understanding of the various people of the nation.

24

Section 4. Matters on Research and Development of Technologies regarding

Biomass Utilization

1. Basic perspective in promoting research and development of technologies

Biomass is a sustainable and renewable resource with excellent characteristics

called "carbon neutral". On the other hand, compared to fossil resources, which

exist widely and thinly and needs costs for its collection, it has issues such as

that it is difficult to stably supply raw materials of a certain quality. Therefore,

in order to utilize biomass stably and efficiently, it is essential to develop new

technologies to overcome these issues and to improve existing technologies.

Furthermore, in order to efficiently and effectively utilize biomass, it is

important to build a technological system to be able to establish business looking

at as one system from its collection and transport to conversion/ processing/

utilization not only by individual technology development but also by integrating

these technologies. Especially, for biomass with low utilization rate, it is an

issue that such a technological system has not been built, and it is necessary to

tackle to solve issues being a bottleneck in building a technological system, based

on the assumptions of reduction effects of greenhouse gases emission, stable supply,

and ensuring economic efficiency.

Biomass utilization still has unmatured parts technologically and socially, and

there are many uncertainties for the future even in research & development.

However, while sharing the above-mentioned problem awareness,

industry-academia-government will work on systematically solving technological

issues as well as on developing a social infrastructure for a practical use of

the results under appropriate role-sharing.

2. Research and Development of technologies to promote practical application

(1) Development of Sustainable Biomass Utilization Technologies

Although various utilization technologies of biomass have been researched, there

is no price competitive power compared to existing products derived from fossil

resources and there are many not to result in practical application, even if

manufacturing technology is established. It is important to push such immature

technologies up to highly sustainable ones based on business environments including

production cost and stable supply system of raw materials while paying sufficient

attention to changes and demands of social conditions.

For this reason, with industry-academia-government collaboration, we will strive

for sophistication and high efficiency of production technologies and collection/

25

transportation/ storage technologies resulting in the diffusion of biomass

products, and accelerate research & development and technological demonstration

resulting in practical use.

We also aim for diffusion and price reduction of facilities such as biogas plants

and biomass boilers through promoting commercialization by the participation of

domestic plant engineering manufacturers.

(2) Creation of products with high added value

In order to plan to further effective biomass utilization, it is important to

promote the differentiation from the competitive products derived from fossil

resources to ensure the competitiveness in the market.

For this reason, we will promote innovative research & development regarding

products with high added value and fuel production technology including the

creation of bio-plastic with high heat/ shock resistances and the establishment

of production/ utilization methods of hydrogen gas derived from sewage sludge.

(3) Expansion of Biomass Utilization by Mixed Utilization, etc.

Without sticking to the utilization of a single raw material, processing mixed

utilization of various biomass in accordance with regional circumstances, like the

promotion of methane fermentation by combination of livestock excrement, sewage

sludge, and food waste, etc. or mixed combustion of coal and woody biomass, results

in stable ensuring raw materials and increasing biomass utilization.

For this purpose, we will grasp issues emerged by mixed utilization of multiple

types of biomass and raw materials other than biomass, as well as progress the

research and development of technologies required for solving them and expansion.

In addition, in order to contribute local production for local consumption of energy,

diversification of risk at the time of disaster, and improvement of security, we

will promote a development of technologies required for mixed utilization between

the energy gained by utilizing regional biomass and other renewable energy.

(4) Establishment of Technologies to Promote Efficient Utilization of Biomass

In order to utilize biomass without waste, we will promote research & development

of efficient conversion/ utilization technologies as well as we will aim to

establish technologies to contribute recycling utilization of biomass including

technologies to efficiently utilize residue heat accompanied with a power

generation and an efficient utilization of byproduct such as digestive fluid

generated during biogas manufacturing process.

26

3. Research and Development of Technologies Linking to Wider Dissemination of

Biofuel

(1) Promoting Biofuel Utilization Made from Herbaceous Plants and Arbors

In order to utilize non-edible parts of crops, which do not compete with foods,

and/ or non-edible cellulosic biomass as fuel, the research and development

regarding efficient saccharification and production of chemical raw materials, etc.

have been progressed. However, compared to fossil fuels, since its production cost

is still high, in order to promote the utilization by expanding its production,

it is essential to organize issues pertaining to technologies and raw material

supply and to continue demonstrations in anticipation of developments of necessary

technologies and commercialization.

In biofuel production, since it is important to build a system to gain higher

profit throughout the production including the effective utilization of residues,

not focusing only on a single exit called fuel, we will progress a development of

related technologies such as the process of producing feed from residues.

We will also promote research & development of technologies to contribute the

development of easily resolvable energy crop with a large quantity of biomass and

the reduction of production cost from the point of stably ensuring raw materials.

(2) Development of Next-Generation Biofuels by Micro-algae, etc.

The expansion of biofuel demands is anticipated in order to reduce the emission of carbon

dioxide, and it is expected to establish the technology to produce biofuel on a commercial basis

by extracting/ converting from microalgae to oils and fats or carbon hydride.

For this reason, we will promote research & development and demonstration for

practical use of technologies in anticipation of industrialization, including the

selection of high productive algae such as fats and oils, mass culture,

establishment of elemental technologies of collection/ extraction/ conversion

processes, and construction and evaluation of consistent production process

including cost reduction and effective utilization of residuals.

In addition, since microalgae are also gathering people's attention from the

points of CCU (Carbon dioxide Capture and Utilization) and sewage purification,

we will promote research for a practical use of these besides production technology

of biofuel.

Furthermore, besides microalgae, we will also promote research & development

regarding production technology of next-generation biofuel including the

technologies to produce biofuel through gasification of municipal waste and

non-edible biomass and to produce forest remaining wood by liquefaction/

27

modification.

4. Research and Development of Technologies to Build Biomass Refinery

(1) Development of Technologies to Convert Biomass to Effective Substances

Efficiently

In order to build "Biomass Refinery", which encourages the substitution from

existing products derived from fossil resources to ones derived from biomass, it

is necessary not only to progress development of technologies to decompose/ convert

biomass to versatile and useful chemical substances but also to develop

technologies to resynthesize high-molecular compounds from these substances.

For this reason, we will drive forward necessary research and development such

as conversion technologies, etc. to progress the material utilization of biomass

including; the technology of producing and utilizing of high-functioning and new

raw materials including CNF (cellulose nanofiber) from the woody biomass of forest

remaining wood and plant fiber of non-edible parts of crops, the technology to

synthesize chemicals by saccharification of cellulose or hemicellulose, and the

technology to extract lignin from woody biomass to convert to new high-functioning

raw materials with high intensity and high thermostability.

(2) Development of Products in Anticipation of Future Demands

In building a biomass refinery, it is important not only to decompose/ convert

biomass into useful chemical substances but also to develop and expand specific

products made from these substances.

Therefore, with industry-academia-government collaboration, we will promote

development anticipated in future demands including a chemical admixture for

concrete made of biomass, a carbon fiber, and high molecular compounds such as

plastics, and hybrid materials by compositing resin and rubber.

28

Section 5. Required Matters to Promote Measures Regarding the Promotion of

Biomass Utilization Comprehensively and Systematically

1. Appropriate Role Sharing Among Various Stakeholders and Strengthening of

Collaboration and Cooperation

In order to continuously utilize biomass, it is important to organically connect

among each stage of the production, collection, conversion and utilization, and

to build a recycling system with economic efficiency as a whole. For this reason,

under appropriate role sharing, it is necessary for various stakeholders to promote

biomass utilization while closer cooperating with each other more than ever.

(1) Roles of Local Governments

Municipalities will systematically tackle to build biomass utilization system

in a region based on a municipal promotional plan for biomass utilization while

considering a regional characteristic. They will also promote the utilization of

biomass products in facilities and businesses of a local government. Furthermore,

they will strive to fulfill the leading role for biomass utilization in a region

through the collaboration with a community and information sharing.

A prefecture will strive for the formulation of a promotion plan for biomass

utilization in the prefecture from the points of a building of a wide range of

biomass utilization system beyond the range of municipality and of promoting the

collaboration among municipalities, while closely exchanging information with

municipalities.

They also will promote the formulation of social consensus against biomass

utilization in cooperation with the country in these initiatives.

(2) Roles of Farmers, Forestry Workers, and Fishery Workers

Senary industrialization of rural area is important initiatives to regenerate

Japan's rural areas, which not only motivated farmers, forestry workers, and

fishery workers but also various business operators in a region connect resources

derived from their rural areas to industry to develop a regional business and to

create a new business condition.

It is expected that farmers, forestry workers, and fishery workers fulfill a

considerable role in building a recycle-oriented society while utilizing regional

resources effectually as a supplier of biomass, which is one of the significant

resources in promoting Senary industrialization in rural areas and as a person

29

utilizing it by him/herself. Therefore, when supplying biomass, farmers, forestry

workers, and fishery workers will strive to precisely address needs of

manufacturers of biomass products regarding supply time, amount, and quality.

However, it shall be considered so as not to occur troubles on ensuring stable

supply of foods, feed, and materials; for example, among byproducts and

non-standard crops, it is to attempt to supply ones, which are inappropriate to

be utilized as foods, feed, and materials due to quality or demand & supply, as

biomass.

(3) Roles of Manufacturers of Biomass Products, etc.

A manufacturer such as biomass products shall tackle an installation of efficient

biomass conversion facilities and an introduction of manufacturing method

contributing to a reduction of manufacturing cost, as well as attempt to effectively

utilize byproduct accompanied with manufacture such as biomass products as

fertilizer or other goods.

(4) Roles of Non-Profit Organizations

Activities of non-profit organizations become to play a significant role in

fostering social opportunities which every single citizen voluntary and positively

tackle biomass utilization. For example, with the collaboration with non-profit

organizations and farmers throughout Japan, the initiatives are conducted; seeds

of rape blossoms are pressed to create rapeseed oil, and then the oil is provided

to school lunch, restaurant, and general household, as well as waste edible oil

is collected to utilize as bio-diesel fuel.

It is expected that non-profit organizations conduct self-directive activities

to contribute to biomass utilization while considering the directions presented

in the Basic Act and this basic plan.

(5) Roles of the People

Since it is important to deepen the understanding and interests of the whole

citizens regarding biomass in order to promote biomass utilization, every single

citizen will fully understand the purpose of biomass utilization and strive for

working on its utilization voluntary and positively.

2．Inspection of the Progress Situation of Measures and Review of the Plan

For the goals set forth in this basic plan, we will investigate its achievement

30

situation at a right time and publish the results through Internet. In addition,

by taking a change of situations regarding biomass into consideration, and based

on the result of an investigation about achievement situation of the goals, we will

discuss this Basic Plan at least every five years, and will change this Basic Plan

if it is found to be necessary.