ENVALITH
Green Earth Institute株式会社 logo

Green Earth Institute Co., Ltd.

9212・Growth Market・Services

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Green Earth Institute株式会社 logo
Green Earth Institute Co., Ltd.9212

Business

Green Earth Institute Co., Ltd. is a technology development venture established in 2011 with the aim of commercializing biomanufacturing technology (RITE Bioprocess®) developed over approximately 30 years by the Research Institute of Innovative Technology for the Earth (RITE), a public interest incorporated foundation. With high-efficiency fermentation technology (bioprocess) utilizing Corynebacterium bacteria as its core technology, the company's corporate philosophy is to simultaneously realize a bioeconomy and a circular economy by converting petroleum-derived chemicals into biomass-derived chemicals. Its main customers are NEDO (through commissioned national projects) and partner companies in the chemical, paper, and energy industries both in Japan and overseas, and it provides integrated expertise from research and development through to commercialization for amino acids, biofuels, and bio-resin raw materials, among others. The company listed on the Growth Market of the Tokyo Stock Exchange in December 2021.

Business Model

The Company does not own commercial production facilities itself, and monetizes through four formats: (1) Contract R&D Services (Stage 2: milestone-based revenue), (2) licensing (upfront payment + royalties), (3) proprietary sales (product sales via contracted manufacturing), and (4) Technology Package (bulk provision of microbial strain/process information plus facility design documents). The structure aims to commercialize technologies accumulated in Stage 2 during Stage 3, transitioning to long-term, stable revenue utilizing patent rights and other assets. In FY2025 (ended September 2025), the ratio of sales to NEDO was 38.2% (down from 55.2% in the previous fiscal year), with the ratio to private-sector partners expanding.

Company Strengths

The company holds a proprietary fermentation method that leverages the characteristic of Corynebacterium, which maintains high metabolic activity without proliferating under oxygen-limited conditions. Compared to conventional fermentation methods, it achieves higher raw material efficiency, requires smaller-scale equipment, and enables shorter production times, while being less susceptible to fermentation-inhibiting substances derived from non-edible biomass. Scale-up simulation using CFD and verification equipment with a 3,000L fermentation tank have also been established.

The company has been commissioned for and selected for the Biofoundry Platform project (6 years, total project value of ¥5.4 billion), the Green Innovation Fund project (commissioned in 2023), and the Bio-manufacturing Revolution Promotion Program (1st round: 8 years, total subsidy of approximately ¥1.4 billion; 2nd round: 6 years, total subsidy of approximately ¥300 million). This structure allows national projects to simultaneously support the revenue base and research infrastructure development.

The company has already achieved licensing of five types of amino acids—valine, alanine, aspartic acid, β-alanine, and others—as well as rice-derived next-generation protein, and has also achieved in-house sales of cosmetic-grade ethanol. Starting with a valine licensing agreement with a Chinese company in 2018, the company has built up a track record of commercialization, with Stage 3 revenue for FY2025 (ending September 2025) expanding to ¥172 million (approximately 5 times the previous fiscal year).

ENVALITH's Perspective

Operating loss for the interim period of FY2026 (ending March 2026) was ¥186 million (an expansion of ¥53 million year-on-year), and interim net loss widened to ¥192 million. However, the company has clearly indicated seasonality whereby revenue concentrates in the fourth quarter due to a high proportion of government-contracted work, and the full-year forecast (net sales of ¥1,035 million, ordinary income of ¥175 million, net income of ¥146 million) remains unchanged from the figures announced in November 2025. Given that the company achieved its first-ever ordinary income and net income surplus in the prior period (FY2025, ending March 2026 — note: original source states 2025年9月期), the full-year forecast presupposes maintaining profitability, but the risk of revenue concentration in the latter half continues to warrant close monitoring.

Net sales for the current interim period were ¥240 million (up 0.1% year-on-year), essentially flat, while selling, general and administrative expenses increased by ¥52 million to ¥353 million (from ¥301 million in the same period of the prior year), which is the primary cause of the widening operating loss. Cost of sales was largely unchanged at ¥74 million (versus ¥73 million in the same period of the prior year), and the gross profit margin was maintained at 69.3%. The increase in personnel costs and expenses appears to stem from strengthening the R&D structure, but whether these costs can be recovered on a full-year basis depends on revenue realization in the latter half.

Suspense receipts increased by ¥634 million, from ¥509 million at the end of the previous fiscal year to ¥1,143 million, primarily due to provisional payments received from NEDO for capital expenditure costs related to the Biofoundry Platform business. While this serves as evidence of business progress, cash outflow from investing activities also expanded significantly to ¥595 million (from ¥117 million in the same period of the prior year). Cash and deposits decreased to ¥1,651 million (from ¥2,060 million at the end of the previous fiscal year), and the equity ratio also declined to 59.7% (from 71.0% at the end of the previous fiscal year). Although the company still retains financial flexibility, ongoing monitoring of cash consumption trends associated with the expanding scale of capital expenditure is necessary.

Growth Strategy

Accelerate commercialization through three forms—licensing, product sales, and Technology Packages—to establish the company's position as a biomanufacturing platformer

Under the biofoundry business commissioned by NEDO (total project scale of ¥54 million, over 6 years), the company is building and operating a platform for developing and demonstrating commercialization processes for biomanufacturing technologies from universities and companies. As of the end of March 2026, construction in progress had reached ¥429 million, indicating that capital investment is now in full swing.

The company continues to advance the Green Innovation Fund Project (bio project scale of ¥1,800 million, over 10 years) aimed at achieving carbon neutrality, as well as the Biomanufacturing Revolution Promotion Project (1st and 2nd rounds). By undertaking these national policy projects, the company simultaneously secures external funding for R&D expenses and accumulates technological expertise.

In FY2025 (ended September 2025), licensing and product sales revenue expanded to ¥172 million (approximately 5 times the previous fiscal year), with sales to China also reaching ¥54 million, indicating progress in commercialization. Through maintaining and expanding the total pipeline of 22 projects (21 in Stage 2 and 1 in Stage 3), the company aims to increase the proportion of revenue from private-sector sources and diversify geographically.

Last updated: July 17, 2026