Nomura Securities has signed a memorandum of understanding (MOU) with Shonaikomekobo Corporation to advance decarbonization and sustainable agriculture using biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More. Shonaikomekobo, a collective of farmers in Japan’s Shonai region, will begin producing biochar in March 2025 by pyrolyzing rice husks—an agricultural byproduct often discarded. This biochar will be used to enhance soil quality, sequester carbon, and reduce greenhouse gas emissions through carbon farming.

As part of the initiative, Shonaikomekobo will collect rice husks within a 30-kilometer radius of a new biochar production facility and apply the biochar to local farmland, decreasing reliance on chemical fertilizers. The project aims to produce 300–400 tons of biochar annually using 1,200–1,600 tons of rice husks. It will support rice and wheat cultivation while contributing to the circular economy.

Nomura will facilitate biochar expansion across Japan by collaborating with businesses, promoting industrial applications, and developing J-Credits—Japan’s carbon credit system. The initiative aligns with Nomura’s broader sustainability efforts, including its Sustainable Innovation Group, which focuses on carbon dioxide removal (CDR) technologies.

With an on-site inspection scheduled for March 28, 2025, this partnership represents a step toward integrating financial expertise with climate-conscious agricultural practices, reinforcing both environmental and economic sustainability.

READ MORE: Nomura and Shonaikomekobo Sign MOU to Drive Decarbonization and Enhance Agriculture Using Biochar