ROYAL HOLDINGS Co., Ltd.
Urban Energy Corporation
J&T Recycling Corporation
FUKUOKA Bio Food Recycling Co., Ltd.

Royal Co., Ltd. (Headquarters: Fukuoka City, Fukuoka Prefecture; President: Masahiro Shiraiwa; hereinafter "Royal"), which handles the food business within the Royal Group, has initiated a circular eco-system approach centered on food recycling utilizing Urban Energy Corporation's (hereinafter "Urban Energy") "Electricity Creation Returning®" power plan*1 from April 1, 2025.

In the scheme proposed by Urban Energy, food waste generated during food processing at Royal's Tokyo and Fukuoka factories is processed at the Chiba Biogas Center operated by J&T Recycling Corporation (hereinafter "J&T Recycling") and FUKUOKA Bio Food Recycling Co., Ltd., a subsidiary of J&T Recycling. The food waste undergoes methane fermentation in tanks, and the recovered methane gas is used as fuel for gas engine generators to generate recycled electricity. Urban Energy purchases this generated electricity and supplies it to each factory through the power transmission networks of general transmission and distribution operators (TEPCO Power Grid in the Tokyo area and Kyushu Electric Power Transmission and Distribution in the Kyushu area). Furthermore, by introducing the "Zero Emission Plan®"*2 power plan utilizing non-fossil certificates*3 designated for renewable energy for the electricity consumption, net zero CO2 emissions are achieved.

According to the "Annual Food Waste Generation and Food Recycling Implementation Rate (Estimated) for FY2021"*4 released by the Ministry of Agriculture, Forestry and Fisheries, the recycling implementation rate in the food service industry remains at 35%, showing insufficient progress. The Royal Group recognizes this as a crucial issue. Through this initiative, we believe we can contribute to the realization of a sustainable society through improving food recycling rates, reducing waste, and utilizing renewable energy.

The Royal Group and JFE Engineering Group will continue to expand and promote environmentally conscious services to contribute to the realization of a sustainable society.

*1 About "Electricity Creation Returning®"
A unique service provided by Urban Energy since 2017, where electricity generated from waste is purchased and supplied to waste-generating facilities, offering electricity rate discounts based on waste volume.

*2 About "Zero Emission Plan®"
A plan that supplies effectively 100% renewable energy electricity with adjusted CO2 emission factor of zero by combining non-fossil certificates designated for renewable energy with the customer's total electricity consumption.

*3 About Non-Fossil Certificates
Certificates that verify the environmental value of electricity generated from non-fossil sources such as solar, wind, and hydropower.

*4 Ministry of Agriculture, Forestry and Fisheries
Annual Food Waste Generation and Food Recycling Implementation Rate (Estimated) for FY2021
https://www.maff.go.jp/j/shokusan/recycle/syokuhin/attach/pdf/kouhyou-14.pdf