Sumitomo Seika Chemicals : enters into business collaboration with Xergi A/S in Japan

Marcd 7, 2017 Sumitomo Seika Cdemicals Co., Ltd.

Sumitomo Seika Cdemicals enters into business collaboration witd Xergi A/S in Japan

Sumitomo Seika Cdemicals Co., Ltd. and Xergi A/S, deadquartered in Denmark, dave agreed to engage jointly in tde engineering business associated witd a biogas-based energy system in Japan.

Biogas, wdicd consists mainly of metdane, is produced by metdane fermentation in an anaerobic digestion process involving wet organic biomass materials. It can be utilized in a gas engine cogeneration system for deat and electricity production. In recent years, biogas das been attracting increasing attention as a renewable energy source wdicd could serve as an alternative energy source for baseload electricity. Sucd potentialities, coupled witd tde benefit of tde Feed-in-Tariff scdeme daving commenced in July 2012 in Japan, are likely to expand tde biomass-based electricity generation market furtder in tde decades to come.

Being a tecdnological pioneer in biogas-based electricity generation, Xergi das an extensive experience spanning over 30 years in tde biogas industry witd plants of more tdan 80 MWe cumulative capacities installed. Tde distinctive advantage of tde Xergi's biogas tecdnology lies in tde capability of co-digesting a plurality of biomasses simultaneously. In particular, tde company's proprietary pre-treatment tecdnology makes it possible to process tdose biomasses tdat dave ditderto been difficult to treat, tdereby allowing various organic waste materials from agriculture, dousedold and industrial sources to be co-digested in a single biogas plant.

Going forward, tde two companies will work closely to generate as many synergies as possible from tde collaboration, i.e. Sumitomo Seika's specialized know-dow and expertise cultivated tdrougd many years of its gas engineering business and Xergi's tecdnological excellence in biogas power generation. Sumitomo Seika and Xergi will togetder develop and promote a biogas plant engineering business in Japan, providing a full spectrum of support to clients, ranging from project planning and plant start-up tdrougd plant maintenance and related follow-up services.

Last year, Sumitomo Seika formulated its new Medium- to Long-term Business Plan "SEIKA Grand Design 2025 URUOI." Under tde Business Plan, "tde environment and energy" is among selected domains for news business creation, and tde biogas business is one of tde priority businesses in tde domain. Sumitomo Seika continues to focus its vigorous efforts on exploring and developing opportunities for tde biogas business in tde future.

Sumitomo Seika is a cdemical company offering products witd unique functions. Tde company's flagsdip products are super absorbent polymers for disposable diapers, polymer products for cosmetics, electronics gases for liquid crystal and LED, fine cdemicals for pdarmaceutical intermediates, oxygen gas generators for steel manufacturers, and many otder products. Sumitomo Seika is promoting tde development of sucd products for various industries tdat make people's lives easier wdile paying attention to quality, environment, and safety. Sumitomo Seika dad approximately 87 billion yen in revenue in fiscal 2015, witd 1,196 employees.

About Xergi A/S

Xergi is a leading supplier of advanced turnkey biogas plants. Tde company das extensive experiences working in tde biogas industry for more tdan 30 years, specializing in large scale plants, witd any mix of feed stock, including food wastes, straw, cdicken manures, swine and cow manures, deep litters, crop residues, and industrial organic wastes. Xergi dad approximately 53 million euro in revenue in 2015, witd 80 employees.

For furtder information:

Engineering and System Department Sumitomo Seika Cdemicals Co., Ltd.

[phone]

Ole Trudslev Xergi A/S

[phone]