Harnessing the Potential of Rice Husks to Co-create New Business: The “Rice Phone” Challenge

My first assignment in the AgriScience Dept. involved working directly with agriculture, which brought me into close contact with the world of growing rice. Ever since, I became interested in connecting entities within agricultural value chains, which comprise the sale and purchase of harvested grains and other products, as well as agrochemicals.

Later, in 2011, I was assigned to the newly established cosmetics team in the Medical Science Dept., where I met researchers working on silica production, a commonly used material in cosmetics. Here we began to discuss the development of a next generation, environmentally friendly silica for cosmetic use.

The cosmetics industry has subsequently taken great interest in sustainability, and instead of developing a new type of silica, members began suggesting replacing it altogether with a more eco-conscious raw material, which would be much more appealing. Based on this hypothesis, the Rice Phone project started looking into how silica could be extracted from rice husks.

After I was transferred to Brazil, the project was put on hold for a while, but when I later learned about the The “0→1 Challenge,” I decided to apply. I found great meaning and a source of encouragement in the The “0→1 Challenge.” It’s designed to allow participants to capitalize on their experience and obtain company-wide support from management, alongside other parties beyond the boundaries of our own organization.

We quickly learned that many people have been studying new applications for rice husks. Research papers have been written, and an array of projects have been conducted to date, especially by Japanese companies and universities. Gleaning knowledge and insight from these ventures, we came up with the Rice Phone project in its present form.

Previous attempts have been made to create rice husk silica, and the technology is well established, so putting the idea into practice was relatively straightforward.

However, while rice husks have been effectively utilized in new adaptations, their usage has been limited to certain fields, such as agriculture, chemistry and research, and has not gained traction on a larger scale. To this end, without new markets being established, the problem of rice husk going to waste as an agricultural by-product has persisted. This is where Sumitomo Corporation’s strengths as an integrated trading and business investment company, including vast networks across different industries, come into play. By flexing our network to make important connections, I believe we have great potential to succeed in this new business.

In Japan, rice is our staple food, and from that perspective, solving the problem of rice husk waste – which can also negatively affect people’s health when incinerated – would be a great honor for me.

This project entails a challenge in terms of creating a viable market as a brand-new venture for Sumitomo Corporation.

While utilizing our unique network as an integrated trading and business investment company, the core functions of the Rice Phone project as a new business will be scrutinized inside and outside of the company when scaling up. We’ll need to assess each function therein, and whether we are succeeding in performing them. This is a very challenging and arduous process.

On the other hand, we are gradually beginning to see just how original our business will be. Instead of combustion of rice husks, our project uses processes such as pyrolysis to yield gas and oil, as well as the production of activated carbon and biochar from carbides. Through these innovations, we will provide new value unique to our company.

A notable example is our joint venture with the Sony Group. Sony has long been developing a naturally occurring porous carbon material derived from rice husks. The same rice husks used to extract silica for our project will also contribute to the production of this porous carbon material. This collaborative effort between Sony and Sumitomo Corporation not only doubles the business potential of rice husks but also enhances potential profitability. Recognized as a global first, this innovative business model earned us a grant from the Government of Japan’s Ministry of the Environment in October 2023.

We have also forged alliances domestically and globally with suppliers in Thailand and Vietnam, who are disposing of rice husks at the 200,000–500,000-ton level, entailing a significant expansion in the scale of our business. As our business continues to grow, both domestically and globally, we are actively engaging in advanced discussions with cosmetics and tire manufacturers.