We caught up with Euglena Co., Ltd. Co-CEO and CFiO Tomohiro Wakahara to discuss how the company is leading the charge in sustainable innovation. With a vision firmly rooted in sustainability and social responsibility, Euglena is not just creating products, it’s shaping a future where science meets purpose. Read more from an excerpt of our interview below.
Within the context of your industry, what do you believe gives Japan a competitive advantage versus that of regional competitors?
One of the key aspects of Japanese food is umami, which comes from the culture of fermentation. With a variety of fermented foods, such as pickles, miso, natto, and sake, this technique is deeply ingrained into Japanese culture. Japanese scientists have very deeply studied the science, or rather the art, of culturing microorganisms to produce a number of different tastes. This boils down to a level of craftsmanship that requires a lot of iterations to perfect. Fermentation technologies are certainly a competitive advantage that Japan boasts, alongside its capability to leverage a relatively small land mass and the diversity of four distinct seasons.
The microalgae ‘Euglena’ demonstrates profound potential within a number of related industries. What specific biological traits or capabilities of Euglena make it such an attractive choice for these diverse applications?
Japanese culture often revolves around mottainai, or preventing waste. People here often take care to eat every kind of food available, as well as gathering waste such as paper for use in other ways. As such, I believe that the national mindset runs parallel to the SDGs mindset, it is really embedded into our culture.
One of the competitive advantages of Japanese industry is our agricultural field. Some fruits, such as apples, grapes, and strawberries, are the best of their kind in the world, achieved through precise breeding and technical know-how. With limited land resources, we have been able to maximize output to the fullest extent. Euglena Co., Ltd. was established from the agriculture department of Tokyo University, and we believe that we can export our know-how to other regions in Asia. Our unique microalgae, Euglena, can grow through photosynthesis, similar to plants, whilst also moving by itself, like an amoeba. This is one key characteristic that sets it apart from others.
Can you elaborate on the challenges of cultivating microalgae Euglena on a commercial scale and how technological advancements have helped you optimize this process?
Currently, biofuel is produced with used cooking oil, which is as cheap as milk per liter. As such, the production cost of Euglena-derived oil as biofuel feedstock is still difficult to match this level even on a commercial scale, however, we are not giving up. To increase our yield rate, we are trialing a variety of different cultivation methods, which is a competitive advantage for our company.
We have been developing and trialing the applications and health functionalities Euglena for food use. We have achieved halal certification in Malaysia, meaning there is much potential for us to leverage the nutritious side of Euglena in majority Muslim countries. Once again, the lack of a cell wall means that, unlike vegetables, Euglenacan easily be digested and its nutrients absorbed. With 59 kinds of nutrients, the potential to improve sleep, alleviate stress, and boost immunity, it has many advantages as a functional food ingredient.
Currently, in which product area are you seeing the most growth?
Currently, most of our profits come from the healthcare business, with sales encompassing 90% of our total portfolio. We will continue to grow this business from its current level of 45 billion yen to 60 billion yen. The biofuel business will be our next pillar of revenue, with the construction of a new commercial plant jointly with PETRONAS and Eni in Malaysia contributing to this growth. Our target share will be 15% for the joint venture, hoping to trade 100,000 kL of biofuel per year. Considering that the demand for Sustainable Aviation Fuel (SAF) in Japan is expected by 2030 to be at around 1.7 million kL per year, this will be a significant achievement for us, given our company size, generating around 6 billion yen in profit.
What is your strategy for expanding Euglena’s presence internationally?
Expansion to overseas markets is one of our main challenges going forward. Firstly, we have to hire talented people, as well as developing strong partners in each target region. Our first choice will naturally be Asian countries. Our new biorefinery project, commercial plant, and R&D base in Malaysia will be the next step in future Asian expansion. As our Euglena and Chlorellacultures are halal-certified, they can provide certain vitamins and amino acids for practicing Muslims. Countries such as Indonesia, Bangladesh, and Malaysia have potential for us in this regard.
