Daio Paper secures grant for emissions reduction project

Daio Paper Corporation announced its application for the Ministry of Economy, Trade and Industry's "Support project for energy and manufacturing process transformation in industries where emissions reduction is difficult" has been adopted as of October 7, 2025. This project uses GX economic transition bonds to support energy transition initiatives.

The adopted project involves building a power generation facility at Daio Paper's Mishima Plant. This facility will handle high-chlorine fuels, using high-chlorine waste and local general waste pre-treated by an aerobic fermentation drying method. The aim is to stop using coal boilers, contributing to the group's target of a 46% reduction in fossil-fuel-derived CO2 emissions and a 20% reduction in GHG emissions by fiscal year 2030, compared to fiscal year 2013 levels.

The total investment for the new facility is JPY 27.2 bn, with a maximum government support of JPY 8 bn. Daio Paper aims for carbon neutrality by fiscal year 2050 as part of its "Daio Group Transformation 2035" long-term vision. The company expects the impact on its consolidated performance for the fiscal year ending March 2026 to be minor.