TOWING and Aisin Takaoka Initiate Feasibility Study for Carbon Credit Creation Using Palm-Derived Biochar in Indonesia

TOWING and Aisin Takaoka have jointly initiated a feasibility study (FS) in Kalimantan, Indonesia, aimed at establishing a carbon credit creation business utilizing biochar derived from palm residues.

As global efforts to combat climate change intensify, 'negative emission technologies'—which sequester or absorb atmospheric carbon dioxide—are gaining importance. Specifically, applying 'biochar,' produced from plant-based biomass, to agricultural land is recognized as an effective method for long-term soil carbon sequestration.

This project leverages Aisin Takaoka’s expertise and infrastructure in its Bio-M-Coke® business alongside TOWING’s high-performance biochar ('Sora-Tan') technology and its experience in developing and operating carbon credit projects. The companies aim to build an integrated business model spanning biochar production from palm-derived biomass, application to farmland, and subsequent carbon credit creation in Indonesia.

Main Initiatives: - Carbon Credit Scheme Design: Selection of voluntary credit programs and scrutiny of methodologies for project application. - Economic Feasibility Assessment: Verification of profitability, production costs, raw material procurement costs, and CAPEX/OPEX analysis. - Agricultural Quality Assessment: Evaluating the biochar produced from local raw materials as an agricultural resource.

Going forward, based on the results of this FS, both companies intend to advance the project toward formal implementation, credit generation, and sales, contributing to a carbon-neutral society.