Local Energy System Co., Ltd. (hereinafter “LES”) (Investors: Kumagai Gumi Co., Ltd., Kiyomoto Iron Works Co., Ltd., and our company) held a completion ceremony on July 15, 2026, in Saijo City, Ehime Prefecture, for Japan’s first black bark pellet (hereinafter “BBP”) manufacturing plant. The ceremony was attended by representatives from the investor companies, as well as the Mayor of Saijo City, the Director of the Toyo Regional Bureau of Ehime Prefecture, and many other stakeholders who contributed to the advancement of this project. In addition, representatives from various media outlets attended to cover the event, touring the plant and interviewing those involved.
This plant is a production facility that manufactures wood pellets using bark (tree bark) generated at sawmills and other facilities as raw material. By subjecting these pellets to heat treatment in a carbonization unit, the plant produces “BBP,” a new energy source that contributes to a high-value-added, decarbonized society. It also boasts one of the largest production capacities in Japan for a black pellet plant operating at commercial scale and is the first facility in the country to produce BBP using bark as a raw material. The plant was completed in June 2026, and we are currently conducting trial operations to ensure the stable operation of all equipment. Trial operations will continue through September 2026, with commercial operations scheduled to begin in October of the same year. Following the start of commercial operations, we will work to establish a sustainable energy supply system with a view to supplying products to a wide range of sectors, including power generation and industrial applications.
Going forward, we will continue to contribute to the energy transition and resource recycling by providing decarbonization solutions, particularly in the biomass sector. At the same time, we will strive to balance social and economic value while contributing to the realization of a sustainable society.

＜Reference＞
Local Energy System Co., Ltd. Website: Local Energy System
Shinsho Corporation Press Release: Completion Ceremony for Wood-Based Black Bark Pellet Manufacturing Plant