The Ministry of the Environment announced on August 24 the results of the first-round call for proposals under the Plastic and Other Materials Resource Circulation System Development Demonstration Project (indirect subsidy scheme), which forms part of the fiscal year 2026 Programme to Promote the Development of Decarbonised Circular Economy Systems.
The programme aims to accelerate the construction of resource circulation systems that contribute to a decarbonised society by progressively reducing reliance on fossil-derived resources. Specifically, it supports the demonstration work required for commercialisation in two areas: the development of alternative materials to replace fossil-derived resources, and the advancement of recycling technologies and systems for plastics and other materials.
The Japan Organic Resources Association (a general incorporated association) conducted the call for proposals from May 18 to June 15, 2026. Selected projects were determined following a preliminary screening of application documents and a review by an evaluation committee composed of independent experts.
The call was divided into four categories: ① demonstration projects for the conversion to, and social implementation of, CO₂-reducing bioplastics and other renewable-resource materials as substitutes for fossil-derived plastics; ② demonstration projects for building plastic recycling processes and reducing their CO₂ emissions; ③ demonstration projects for the production and social implementation of low-CO₂ jet fuel or jet-fuel feedstocks derived from waste biomass; and ④ demonstration projects for building used-oil recycling processes and reducing their CO₂ emissions. In this first round, a total of six projects falling under categories ①, ② and ③ were selected: one project on alternative plastic materials, four on plastic recycling, and one on alternative jet fuel.
Under category ①, Oji Holdings Corporation will carry out a demonstration project on the production of bio-methanol using domestically sourced timber as the primary feedstock. The project will verify the optimal feedstock conditions and production processes suited to commercial-scale output, covering the gasification of woody biomass in a circulating fluidised-bed gasifier and the subsequent catalytic synthesis of methanol from the resulting hydrogen, carbon monoxide and carbon dioxide.
Four projects were selected under category ②. Kanbou Plus Co., Ltd. will demonstrate closed-loop (bottle-to-bottle style) recycling of used construction sheets back into construction sheets, by applying fine-pulverisation processing technology to composite sheets — made of synthetic resin and fibre that are difficult to separate — without first separating the constituent materials, thereby recovering them as recycled material. Kurita Water Industries Co., Ltd. will work on quality control through fine pulverisation and optimised blending of composite plastics derived from disposable nappies, improve pre-treatment process efficiency, and build and verify a regional circulation model in collaboration with nappie manufacturers. Suminoe Sheet Waterproofing Co., Ltd. will demonstrate a closed-loop recycling technology that removes fibre components originating from reinforcing mesh from flexible polyvinyl chloride waterproofing sheets used on rooftops, and reuses the recovered material as a raw material for the same type of sheet. Mitsui Chemicals, Inc. will conduct scale-up verification of a technology that selectively recovers polyolefins from composite plastics — such as multilayer films and packaging materials — using solvent-separation technology, and recovers them as high-quality recycled polyolefins.
Under category ③, ENEOS Corporation will demonstrate technology for the stable and efficient production of second-generation bioethanol from non-food biomass resources, including waste materials. The bioethanol is expected to be used as a gasoline blending component and as a feedstock for sustainable aviation fuel (SAF), and the project will also verify its applicability as a fuel.
【Source】First-Round Results for the Fiscal Year 2026 Programme to Promote the Development of Decarbonised Circular Economy Systems (Plastic and Other Materials Resource Circulation System Development Demonstration Project) (Indirect Subsidy Scheme)
【Source】Fiscal Year 2026 Subsidy for Measures to Suppress Carbon Dioxide Emissions — Programme to Promote the Development of Decarbonised Circular Economy Systems (Plastic and Other Materials Resource Circulation System Development Demonstration Project)
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