FUSO GROUP HOLDINGS Inc. (Headquarters: Chuo-ku, Tokyo; Representative Director, President and Executive Officer: Hisanobu Kado; hereinafter “FGHD”) hereby announces that on April 1, 2026, its demonstration project to accelerate the use of recycled water in the Republic of Fiji, specifically remote island resort accommodation facilities, has been selected by the Ministry of Economy, Trade and Industry for the Ministry’s FY2024 Supplementary Budget Subsidy Program for Global South Future-Oriented Co-Creation Initiatives (Small-Scale Demonstration / Feasibility Study Projects).

The purpose of the selected project is to verify the feasibility of reducing greenhouse gas emissions (decarbonization) through the use of recycled water at remote island resort accommodations in Fiji, and reducing operational costs such as high fuel costs associated with operating seawater desalination equipment.

*Link to special website for the FY2024 Supplementary Budget Subsidy Program for Global South Future-Oriented Co-Creation Initiatives (Small-Scale Demonstration / Feasibility Study Projects); Japanese only
https://gs-hojo-web-fspoc.jp/index.html

■ Background
Many remote island resort accommodations in Fiji operate seawater desalination equipment to secure water for non-potable domestic use. Most of these desalination plants in Fiji are powered by generators that consume large amounts of fossil fuels to generate electricity, which produces large amounts of greenhouse gases. Meanwhile, the high cost of these fuels has put pressure on operational costs.

This project will verify the feasibility of reducing fossil fuel-derived greenhouse gas emissions and operational costs by processing wastewater from a remote island resort accommodation facility in Fiji into recycled water and using this recycled water as a substitute for freshwater otherwise produced in a seawater desalination plant.

■ Demonstration Details
In this project, FGHD will conduct a demonstration using a water treatment system based on sand filtration technology. This technology, already technically established in Japan, removes turbidity and impurities from water by using stratified layers of sand and gravel as filters.

The sand filtration treatment system to be introduced in this project has been made more compact than conventional models, making it easier to transport. Furthermore, it incorporates advanced technology that eliminates the need to replace filter media. This innovation allows for stable operation in regions where specialized maintenance and installation are challenging, offering reduced logistics and maintenance costs. As a standalone, decentralized water treatment solution, this system can be installed in areas lacking public infrastructure and can be used to ensure an emergency water supply in the event of a disaster.

(Demonstration Items)
⑴ Confirmation of Water Quality Improvements from Water Treatment Equipment
By reprocessing treated water from the wastewater treatment plant in the remote island resort accommodation facility using the sand filtration water treatment system, FGHD will confirm an improvement in water quality to the point where it can be reused as toilet flushing water and for other applications in the facility.

⑵ Verification of Recycled Water (Sand Filtration System-Treated Water) Incorporation Benefits
Treated water (recycled water) that has been confirmed to have improved water quality in process (1) above will be used experimentally as toilet flushing water for the facility’s staff. Odor and coloration will be rigorously assessed during daily use and extended periods of non-use to ensure that the water quality is at a level that can be used in guest rooms.
In addition, the following items will be quantitatively evaluated to measure the impact of the introduction of recycled water on the environment and on facility operations.

● Reduction in freshwater production volume: Curtailment of freshwater production when toilet flushing water is replaced with recycled water
● Reduction in fuel consumption: Reduction in fuel consumption due to reduced operation of seawater desalination plants
● Environmental and economic benefits: Reduction in greenhouse gas emissions and operating costs due to reduced fuel use

⑶ Establishment of Water Quality Standards for Recycled Water Utilization
This project is also positioned as one of the steps to formally introduce the Draft Master Plan for Recycled Water Use, which is being prepared under the Master Plan Development Project*, as a strategy within Fiji. Currently, there are no water quality standards for recycled water in Fiji, and FGHD has received a request from the relevant government agencies for cooperation in establishing such standards, since they will be essential in the promotion of widespread use of recycled water. In parallel with processes (1) and (2) above, FGHD will work to establish water quality standards for recycled water through consultations with government agencies, thereby contributing to the development of local water infrastructure. Thus, building a foundation that leads to the introduction of a master plan for recycled water utilization will lead to the acquisition of de jure (official) standards and de facto (industry) standards for sand filtration water treatment systems, thereby increasing the potential for future commercialization.

*A project with the aim of formulating comprehensive plans (master plans) to systematically promote the long-term development of a country or region, and to work with the government of the partner country and related parties to increase the feasibility of such plans.

■ Future Outlook
With the selection of this project, FGHD will further deepen its demonstration of recycled water utilization at remote island resorts in Fiji and establish a highly effective circular solution model for recycled water utilization that will both reduce the environmental impact associated with the operation of seawater desalination equipment and lowers operational costs.

Based on the results of the demonstration in Fiji, the FUSO GROUP will embody its Mission, “Answers for Community,” on a global scale, with the aim of expanding the program to other island nations and regions facing similar challenges. The Group will help to bring about a sustainable society by harnessing its broad technological capabilities and extensive experience in the business domains of water infrastructure, housing and facilities, and renewable energy, and by providing optimal solutions tailored to regional characteristics not only in Japan but also in other parts of the world.

■ Overview of Demonstration

Item	Details
Project Name	Republic of Fiji/Demonstration Project to Accelerate Recycled Water Use in Remote Island Resorts
Host Demonstration Country	Republic of Fiji
Schedule	Expected project contract date: April 2026 Expected project completion date: February 28, 2027
Demonstration Site	Wastewater treatment plant at a remote island resort accommodation facility
Major Demonstrations	⑴ Confirmation of water quality improvements through the sand filtration treatment system ⑵ Verification of the recycled water introduction benefits ⑶ Establishment of water quality standards for recycled water utilization

Press Release