CHITOSE Group Obtains Funding from Japanese Government-affiliated NEDO for Green Innovation Fund of USD400M Range

KAWASAKI,Japan and SINGAPORE,April 12,2023 --Chitose Laboratory Corp.,the core company of the CHITOSE Group (hereinafter"CHITOSE"),has won funding from a Japanese government-affiliated entity for aproject on the self-proposed theme of "Building a global industry originatingin Japan based on the direct use of CO2 through photosynthesis" for the "GreenInnovation Fund Project (hereinafter "GI Fund"): Promotion of Carbon RecyclingUsing CO2 from Biomanufacturing Technology as a Direct Raw Material." CHITOSEhas been selected as a prospective implementing agency for this theme by theNew Energy and Industrial Technology Development Organization (hereinafter"NEDO"). The total project cost is approximately USD400 million,and theimplementation period is scheduled from FY2023 to FY2030.

Project partners' logos:

https://kyodonewsprwire.jp/prwfile/release/M107621/202304054622/_prw_PI1fl_MS4l1pKj.jpg

CHITOSE is collaborating with other companies/organizations in variouspositions and industries through the "MATSURI" (meaning "festival" in Japanese)project to build a new algae-based industry to replace the petroleum-basedindustry. CHITOSE is working on the development of bio-products,theconstruction of the world's largest 5-hectare microalgae production facilityand the demonstration of long-term large-scale production in Malaysia (*).

Under the GI Fund project theme,for which CHITOSE has been selected as aprospective implementing agency,it will develop the algae productiontechnology on a 100 ha production scale with a focus on both economicrationality and environmental sustainability,and on the development of a widerange of applications such as chemical products,toiletry,fuels,feeds andfoods using microalgal biomass produced directly from CO2 as a raw material.

Through these business activities,CHITOSE will promote the establishment of aglobal algae-based industry originating from Japan,and contribute to therealization of zero carbon emission by 2050 as advocated by the Japanesegovernment.

This project will be implemented with 34 partner companies of the MATSURIproject operated by CHITOSE,Sumitomo Mitsui Banking Corporation (SMBC),Hiroshima University,Nagaoka University of Technology,Nagoya University,andInstitute of Microalgal Technology,Japan (IMAT). In addition,CHITOSE willstart raising private funds in order to accelerate this project through the GIFund.

MATSURI partners' enthusiasm and expectations for this project

https://kyodonewsprwire.jp/attach/202304054622-O1-SkgkNm4n.pdf

About the commissioned and subsidized project which has been adopted

- Business/project name:

Green Innovation Fund Project (GI Fund): Promotion of Carbon Recycling UsingCO2 from Biomanufacturing Technology as a Direct Raw Material

- Adopted theme:

Building a global industry originating in Japan based on the direct use of CO2through photosynthesis

- Theme overview:

Using microalgae,with sunlight as an energy source and CO2 as a directfeedstock,the commercial production of chemicals such as bioplastics andfunctional materials,foods and feeds,with the aim of realizing zerocarbon emission by 2050.

- NEDO disclosure of information on this matter

Details of the public call: https://www.nedo.go.jp/koubo/EF2_100190.html

(Japanese)

Adoption announcement: https://www.nedo.go.jp/koubo/EF3_100190.html(Japanese)

Press release on the adoption:

https://www.nedo.go.jp/news/press/AA5_101619.html (Japanese)

* Commissioned by NEDO to Chitose Laboratory Corp. since 2020

- Press release on adoption: https://chitose-bio.com/jp/news/3514/(Japanese)

- Press release on the start of operation:

https://chitose-bio.com/jp/news/5124/ (Japanese)

About MATSURI

The MATSURI project aims towards the establishment of an advanced microalgae-based industry. CHITOSE has considerable expertise in large-scalemicroalgae production technologies,and is leading the MATSURI projectcollaborating with Japanese progressive enterprises. As what MATSURI means inJapanese,CHITOSE keeps leading a festival to develop a sustainable society.

Image:

https://kyodonewsprwire.jp/prwfile/release/M107621/202304054622/_prw_PI2fl_oI14u9jJ.jpg

Video: A story with a heart for the future,the MATSURI project for buildingthe "algae industry": The world's largest microalgae production facility willaccelerate from here.

https://matsuri.chitose-bio.com/pages/gallery

Website: https://matsuri-partners.chitose-bio.com/en

About CHITOSE Group

CHITOSE Group is a family of biotechnology companies leading the globalbioeconomy. To live in abundance beyond the next millennium using the abilityof living things,CHITOSE pursues the possibilities of biotechnology throughtechnological and business development collaborating with its business partnersall over the world.

Website: https://chitose-bio.com/

About CHITOSE BIO EVOLUTION PTE. LTD. (head office that oversees entire Group)

Established in October,2011

Head Office located in Singapore

CEO: Tomohiro FUJITA,Ph. D.

About Chitose Laboratory Corp. (responsible for the project)

Established in November,2002

Head Office located in Kanagawa Prefecture,Japan

CEO: Tomohiro FUJITA,Ph. D.

COO: Rie KUGIMIYA